While many college students run into debt, some Cal State Fullerton students wonder if newly sworn President Joe Biden will come up with a loan cancellation plan.
According to the Education Data Organization, 43.2 million student borrowers are in debt averaging $ 39,351. Based on that number, the US student loan debt is approximately $ 1.7 trillion.
The data also shows that some students take out an average of over $ 30,000 in credit to earn a bachelor’s degree.
Although Biden has extended the deadline for loan payments to September 30, he is leaving it to Congress to decide how much forgiveness will be given to borrowers.
That plan was not included in its $ 1.9 trillion stimulus package, which was approved by Congress on February 27.
“I think that’s going to be an issue and the details have to be worked out by the Senate and Congressmen,” said Emily Gonzalez, third year biologist at CSUF.
During the running for the presidency, President Biden had announced his intention to get borrowers out of debt, starting with a $ 10,000 package. He also indicated that his government would try to find more ways to help borrowers with higher debt.
Elizabeth Warren, Democratic Senator from Massachusetts and Chuck Schumer, Democratic Minority Senator from New York, urge Biden to take advantage of the executive order and increase the amount from the proposed $ 10,000 to $ 50,000.
In mid-February, the Democrats’ proposal was rejected by Biden.
Gonzalez said she assumed there would be gradual increases in relief.
“I don’t think it automatically goes to 50,” said Gonzalez. “Look how long it took to determine the funding for the stimulus checks. Now we ask them to help specifically on the students. “
Some students have received sufficient funds from the free application for federal student aid or scholarships to cover school costs. Others, like Sabrina Buong, a former CSUF student, had to borrow money to afford their tuition and housing.
Financial aid could cover tuition, accommodation and other expenses based on participation costs and expected family contribution.
Buong spent a semester at CSUF where she took out two loans because she did not get enough financial support to cover all of her expenses.
Students tend to choose a school that offers them financial help because if credit is offered they could attend school without worrying about the debt burden, Buong said.
“I think it’s good, especially for students who are struggling to pay for school, in addition to housing, just for basic needs like food,” said Buong.