Wednesday, May 22, 2024

Editorial: Loan forgiveness faces termination

Cardinal Points last covered the federal student loan forgiveness plan Oct. 21. Much has changed since then. 

President Joe Biden originally made promises to work toward student debt relief last August, but decisions by the Supreme Court have since placed the relief plan in jeopardy.

If Biden’s plan makes it through legislation, students could have up to $20,000 relieved from loans. There have since been two appeals made to the Supreme Court since it has tangled the bill in legal tape. There will be an oral hearing, and then the court is expected to have made its final decision by June.

While Americans wait on the edge of their seat, Biden has stated he feels the Supreme Court will strike down his plan.

“I’m confident we’re on the right side of the law,” Biden said to the Wall Street Journal. “I’m not confident about the outcome of the decision yet.”

This will leave millions of Americans still in an incredible amount of debt. Debt that leaves many having to live paycheck-to-paycheck or costing them luxuries, or even basic necessities, as it is out of their means. 

There is no “backup plan” if this loan forgiveness proposal is killed by the court. Advocates and legal scholars have proposed ways for the bill to possibly pass in other legal loopholes, but it is unsure if the Biden administration feels the drive to do so. 

This single plan could change the future generations of the United States. No longer would students fear debt as they gain higher education. Education that has only further increased in demand with a shrinking job market.

What  can SUNY Plattsburgh students do?

For now, not much can be done. Students can only wait and hope that the court sides with Biden. However, educated financial decisions can be made to alleviate stress.

Educate yourself. Understand the difference between subsidized – no interest accrued while you attend school – and subsidized – interest is accrued over time – loans. Research options for private loans, and the difference between private and federal loans. 

Biden has paused loan interest for now, but it is unsure how long that will continue to hold.

SUNY Plattsburgh’s financial aid office is an incredible resource for any and all questions for student loans. They can be emailed or called, and respond as quickly as possible.

Student Support Services also offers assistance and financial literacy courses for students so they can better comprehend loans and how to pay for college. They also have events throughout the year to better assist students in this way.

Loans can be terrifying and confusing, but students are not lost. There are resources here on campus for us to take advantage of, as everyone deserves an education.

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