FLINT, Mich. (WJRT) – There is a new proposal on the table that could offer some student loan debt cancellation.
President Biden detailed a proposal on Monday, that would cancel at least some debt for more than 30 million Americans; According to the White House this been in the works for months after the Supreme Court rejected the first try at mass cancellation.
“I need that yes,” said Flint resident Monique Kelly, who says she has been out of school for 10 years and is still paying back her debt. “That would be great for a lot of us students. And people who aren’t in school now but still owe, Like me, I’m done with school and I can’t afford to pay it back.”
The plan includes five categories of borrowers.
“It is specifically more targeted this time,” said Sara Cyrus, the senior admin for financial aid at U of M Flint’s campus.
The 5 qualifying catagories include:
1. Borrowers who have been in repayment for 20 years or more
2. People with debt who attended “low-financial-value programs”
3. People experiencing hardship in paying back their loans
4. Borrowers whose balances increased because of interest
5. Low- and middle-income borrowers who qualify for forgiveness but haven’t applied
The possible plan is impacting some people who do want to go to school, but don’t know how they can pay.
“Everybody is not financially stable enough to afford college,” said Flint resident, JT. “So, maybe they have to use a student loan or programs out there, that can get people’s student loans cleared up; I think that’s a good thing to do and especially with America right now and how everything is going with financial situations.”
The Education Department plans to release its formal proposal in the coming months followed by a period for comments; If finalized by November first the rule would take effect in July 2025, though it faces an uphill battle in Congress.
“Students should keep paying on their student loans, in the mean time. Don’t ever stop until you know that things are being passed and are being forgiven,” said Cyrus.
For more information or to find out if you qualify visit the Student Aid website.
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