White House, Washington, DC
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Tens of millions of Americans are eagerly awaiting a message from the Biden administration about what they plan to do about a comprehensive student loan waiver.
Most recently, it was reported that the White House was pushing for a $ 10,000 cancellation plan per borrower (for those earning less than $ 150,000).
Still, President Joe Biden is under strong pressure to do more.
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Senate’s best Democrat, Chuck Schumer of New York, along with Sen. Elizabeth Warren, D-Mass., Are urging him to forgive at least $ 50,000 for everyone.
The NAACP also talks about how $ 10,000 will not go nearly far for black student loan borrowers who carry an average balance of more than $ 50,000 a few years after graduation.
Wisdom Cole, national director of the association’s youth and colleges department, recently said on Twitter that rejecting just $ 10,000 would be a “slap in the face.”
At the same time, the idea of forgiving student debts infuriates many Americans, including those who have never borrowed for their education or gone to college. Some Republicans have said they will try to block the president’s efforts to cancel the debt.
The huge disagreement on the subject partly explains why it was so difficult for the administration to decide how to proceed, especially with the upcoming by-elections.
CNBC asked readers how they would feel if the White House forgave $ 10,000 in student debt. Dozens of people wrote.
Here is what four of them had to say. (Editor’s note: The answers are slightly edited for clarity.)
“$ 10,000 … would be significant to me”
Caleb Perkins, 29, student
Dayton, Ohio
I will have about $ 50,000 in debt by the time I graduate from Ohio University with a master’s degree in social work in December. I am a first generation student who comes from very humble roots. My mother graduated from high school; my father dropped out of high school, but both are some of the hardest workers I know.
I started my higher education at Sinclair Community College here in Dayton, fortunately I received a significant scholarship from the school, as well as a full Pell scholarship due to my family’s income level. I eventually graduated with a degree in cybersecurity and computer forensics before transferring to Ohio University to earn a bachelor’s degree in criminal justice.
I see student loans as one of those necessary evils. Not that I wanted the debt. Ten thousand dollars for forgiveness would be significant to me. Is it as much as I would like to see? No. But it’s better than nothing and a 20% discount on my total is still quite a bit.
“Live within your means”
Stephen Berenson, 59, retired financial analyst
San Antonio
I am writing from the perspective of a parent who funded the bachelor’s degree of two children in private liberal arts colleges and subsequently helped fund a master’s program for one of them. We have not taken out student loans. Instead, we looked at schools where we knew that the chance to fully fund their education could be met with our contribution and merit-based assistance.
Simplifying student loans is a slap in the face to parents and students who have saved for college and selected schools that are within our price points.
Stephen Berenson
retired financial analyst
Both children were admitted to several schools where merit aid packages would not be enough, and we had some serious discussions along with the disappointment of the children when we decided together that the schools were beyond our financial means.
Simplifying student loans is a slap in the face to parents and students who have saved for college and selected schools that are within our price points. The government should encourage the idea of living within your means. I think this message is completely lost today.
“$ 10,000 is unlikely to affect what I owe.”
Kaylea Weiler, 36, partner in a law firm
Chicago
I’m a lawyer who owes $ 125,000 in student loans. This is after I have made consecutive payments in the 10 years I have been out of school and paid $ 25,000 during the interest-free break for the last two years. Before the break, my minimum payment required was $ 1,800 a month. I know that now, as a partner in a law firm, I earn more money than the average borrower, but I feel overwhelmed with debt without options.
I am a new mother and I would love to be able to spend my baby and young years at home with them, but I can’t afford not to keep working. I had to take out loans because I am one of six children, and my parents could not afford to pay for law school or support me financially while I was attending.
Ten thousand dollars would hardly affect what I owe. I feel contradictory even writing this; there are others much worse than me. But this is my situation and I know I am not alone.
“Cancel everything or do nothing”
Erin Bartlett, 42, teacher
St. Paul, Minnesota
I’m completely overwhelmed at the thought that only $ 10,000 has been forgiven. I’ve been a K-12 teacher in Minnesota for 19 years and I have about $ 50,000 left to pay. This debt is crippling. I am currently working two part-time jobs in addition to full-time work to make ends meet.
I am so tired of America being one of the only places in the world where education is not free. If I could cancel all my federal student loans, I could save money to retire and not have to work in three jobs. Cancel everything or do nothing.
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