Meet a teacher with a $ 303,000 debt student who says Biden’s $ 10,000 loan forgiveness plan “doesn’t even drop the bucket”

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  • Biden is reportedly considering $ 10,000 in student loan bailouts for federal borrowers.

  • Cheryl told insiders that the amount would make no difference to her $ 303,000 student debt burden.

  • She said it was okay to repay what she borrowed, but interest continues to grow.

Cheryl, who demanded that the family name be withheld due to privacy concerns, made a difference to President Joe Biden’s plan to allow federal borrowers a $ 10,000 student debt if there was no compound interest. I think it might be.

But with federal student debt of $ 303,000 and private student loans of another $ 20,000, the president’s plans aren’t enough.

“It’s not even a drop in a bucket,” 53-year-old Cheryl told insiders. “If you want to make a real difference, you can eliminate half of the interest we earn, but for now I can’t cover the payment.”

As a Massachusetts teacher, Cheryl had to borrow a student loan for a bachelor’s degree in English and a master’s degree in education. She said it was okay to repay her debt, but the problem was the interest accrued while she was in school and her loan was postponed. As a result, it is nearly impossible to touch the principal balance at current income levels.

Biden has not confirmed the amount of student loan allowances he may make, but in a recent report suggestion He sees a $ 10,000 bailout for a federal borrower who earns less than $ 150,000 a year.That’s his amount Pledge Many democracies to get the path of the campaign Congressman When Supporter He wanted to grow, but he seems to have settled on an amount that would barely hurt the US $ 1.7 trillion student debt burden.

“After all, we have to realize that $ 10,000 isn’t enough,” Wisdom Cole, National Director of the NAACP Youth & College Division, told insiders earlier. “$ 20,000 isn’t enough. $ 30,000 isn’t enough. You need to cancel at least $ 50,000. Isn’t your goal to get maximum relief for most borrowers?”

“I’m completely confused” when student loan payments resume

Biden administration Emphasis It will announce a wide range of remedies before student loan payments resume after August 31st. But with $ 10,000 forgiveness, Cheryl said he wouldn’t be able to afford federal debt for his current income. In particular, he is preparing to send his nephew, who is financially supportive, to college.

“I’m completely confused,” Cheryl said. “And now I’m trying to get my kid to college, and he got a good scholarship, but it doesn’t pay for everything. Other jobs.”

While the payment was suspended, Cheryl was still paying about $ 400 a month on a private student loan. The income-driven repayment plan did not require the federal government to pay $ 200 a month, provided a small financial relief, and helped to buy other basic necessities.

“I have $ 200 to get gas, groceries, and everything else, but I don’t have much left after that,” Cheryl said. “It keeps you in this nasty little loop that you can’t get out of because you can’t afford it, and interest continues to come.”

Cheryl’s profession is technically qualified for the Civil Service Loan Exemption (PSLF) program, which exempts civil service students from debt after 10 years of eligible payments, but while at school. , Was rejected because she said it was time spent deferring payment.

The Ministry of Education publication Actions to allow past payments to be counted, but Cheryl is still waiting, “The money you get from teaching never gets closer to what you need to borrow to be one. There will be no. “

How lawmakers are reacting to the $ 10,000 bailout potential

Biden himself has not confirmed the amount of student debt to cancel for federal borrowers, but some Democrats and supporters said last month that the $ 50,000 bailout was off the table. Was concerned.Massachusetts Senator Elizabeth Warren — one of the main voices of widespread student loan forgiveness — has been released data It emphasized that growing in relief is far more influential.

According to the data, a $ 50,000 debt relief will reduce the balance of all federal borrowers to $ 30 million, or 76%, to zero, while a $ 13,000 borrower will save $ 10,000. ..

“As this analysis clearly shows, canceling student debt is a matter of racial justice, helping millions of hard-working people who have invested in education but are now drowning in debt. Is about providing, “Warren said in a statement. “The more President Biden dismisses, the narrower the racial and wealth gap between borrowers and the greater the boost to American economic futures. That’s right.”

But Republican lawmakers say the exact opposite.Previous insider report Virginia Foxx, head of the Republican Education and Labor Commission, said inflation about canceling student debt on the GOP, which is concerned that Byden will cancel student debt to win Democratic votes in the interim period. Frequently states that taxpayers will be costing $ 150.a billion price Pause of payment pandemic.

For Cheryl, the problem is simple — she just wants to repay what she borrows and doesn’t want to do anything more.

“I don’t mind paying back the money I borrowed,” Cheryl said. “But I care that the government is making their money from my back.”

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