The White House, Washington, DC
Joe Daniel Price | Moment | Getty Images
Tens of millions of Americans eagerly await the Biden administration’s word on what it plans to do with the forgiveness of broad-based student loans.
More recently, it was reported that the White House was leaning toward a $ 10,000 cancellation plan per borrower (for those earning less than $ 150,000).
However, President Joe Biden is under intense pressure to do more.
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New York’s top Democrat Chuck Schumer of Massachusetts, along with Massachusetts Democrat Sen. Elizabeth Warren, have been pushing for him to forgive at least $ 50,000 for everyone.
The NAACP has also talked about how $ 10,000 would not go far enough for black student loan borrowers, who have an average balance of more than $ 50,000 a few years after graduation.
Wisdom Cole, national director of the association’s youth and university division, recently said on Twitter that raising just $ 10,000 would be “a slap in the face.”
At the same time, the idea of student debt forgiveness infuriates many Americans, including those who never applied for a loan for their education or went to college. Some Republicans have said they would try to block an effort by the president to cancel the debt.
The great disagreement on the issue partly explains why it has been so difficult for the administration to decide how to proceed, especially with the upcoming midterm elections.
CNBC asked readers how they would feel if the White House forgave $ 10,000 in student debt. Dozens of people wrote there.
That’s what four of them said. (Editor’s note: Responses have been slightly edited for clarity.)
“$ 10,000 … would be substantial for me”
Caleb Perkins, 29, student
Dayton, Ohio
I will have about $ 50,000 in debt when I graduate in December with my master’s degree in social work from Ohio University. I am a first generation college student who comes from very humble roots. My mother has a high school diploma; my dad has dropped out of high school, but both are some of the hardest workers I’ve ever met.
I started my higher education at Sinclair Community College here in Dayton, fortunately receiving a substantial school scholarship as well as a full Skin scholarship due to my family’s income level. I eventually graduated with an associate in cybersecurity and forensic computer science before moving to Ohio University to pursue a bachelor’s degree in criminal justice.
I see student loans as one of those necessary evils. It’s not that I wanted debt. Ten thousand dollars in forgiveness would be substantial to me. Is that how much I would like to see? No, but it’s better than nothing and a 20% discount on my total is still enough.
“Living within your means”
Stephen Berenson, 59, retired financial analyst
Saint Anthony
I am writing from the perspective of a father who funded two undergraduate studies for children at private liberal arts colleges and later helped fund a master’s program for one of them. We did not take out any student loans. Instead, we looked at schools where we knew that the ability to fully fund their education could be met with our contribution and merit-based grants.
Forgiving student loans is a slap in the face to parents and students who saved for college and selected schools that were within our prices.
Stephen Berenson
retired financial analyst
The two children were accepted into a couple of schools where the merit aid packages would not be enough, and we had some serious discussions along with the disappointment of the children when we collectively decided that the schools were above the our financial possibilities.
Forgiving student loans is a slap in the face to parents and students who saved for college and selected schools that were within our prices. The government should promote the idea of living according to your means. I think this message is completely lost today.
“$ 10,000 would barely hurt what I owe”
Kaylea Weiler, 36, is a partner in a law firm
Chicago
I am a lawyer who owes $ 125,000 in student loans. That’s after making consistent payments for the 10 years I’ve been out of school and paying $ 25,000 during the interest-free break for the last two years. Before the break, my minimum required payment was $ 1,800 a month. I know that now as a partner in a law firm, I make more money than the average borrower, but I feel indebted with no options.
I’m a new mom and I would love to be able to spend my toddlers ’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 attending.
Ten thousand dollars would barely hurt what I owe. I feel conflicted even writing this; there are others much worse than me. But that’s my situation, and I know I’m not alone.
“Cancel everything or do nothing”
Erin Bartlett, 42, teacher
St. Paul, Minnesota
I am absolutely crushed to think that only $ 10,000 will be forgiven. I’ve been a K-12 educator in Minnesota for 19 years and I have about $ 50,000 left to pay. This debt is paralyzing. I currently work two part-time jobs in addition to my full-time job so I can get to the end of the month.
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 by retiring and not have to work three jobs. Cancel everything or do nothing.