Home New mexico economy Some New Mexicans unhappy with student loan forgiveness program

Some New Mexicans unhappy with student loan forgiveness program

0

Help is on the way for millions of New Mexicans stuck in student debt. On Monday, President Joe Biden (D) announced the launch of the Student Loan Forgiveness Program, the latest phase of his plan to provide debt relief for borrowers. “This will make it easier for many of these borrowers, many of whom are younger and just starting out in their careers,” said Reilly White, an associate professor at the University of New Mexico. The new opportunity could cancel up to $10,000 in student loan debt for people earning less than $125,000 a year or married couples earning less than $250,000 a year. Up to $20,000 could also be forgiven eligible borrowers who were also Pell Grant recipients. White said the program could be the perfect time for many, especially those going through tough times with the current state of the US economy. “Much less stress for many New Mexicans looking, especially in this time of rising inflation and issues around their ability to afford housing and food, he said. However, not everyone praises the new initiative. Tyler Hall, who lives in Roswell, said it wasn’t fair to those who had already paid off their student loans. Like his wife. “We’re not going to get anything out of this, even though I worked 80 hours a week to pay off his loans and paid them off before it happened,” Hall said. Although Hall offered several solutions to end overall student debt, he said it ultimately comes down to interest rates. “I think the first thing would be to end interest on all loans and start charging people the principal,” Hall said. “I could see that something like that would be very helpful for a lot of people, because it’s the interest that really draws you in.” Hall also pointed to another problem with student loan debt: Colleges and universities are raising their tuition fees. He said if people stopped attending these colleges, maybe officials would start charging less for students. “These colleges are increasing tuition year after year because people are willing to take on so much debt. If people stopped enrolling for $100,000 a month or a semester, then the college should start charging less. As long as people are paying that amount, they will continue to increase theirs,” Hall said. Borrowers interested in applying for the relief program are encouraged to visit the federal website here. Interested persons have until December 31, 2023 to apply.

Help is on the way for millions of New Mexicans stuck in student debt.

On Monday, President Joe Biden (D) announced the launch of the Student Loan Forgiveness Program, the latest phase of his plan to provide debt relief for borrowers.

“This will make it easier for many of these borrowers, many of whom are younger and just starting out in their careers,” said Reilly White, an associate professor at the University of New Mexico.

The new opportunity could forgive up to $10,000 in student loan debt for people earning less than $125,000 a year or married couples earning less than $250,000 a year.

Up to $20,000 could also be awarded to eligible borrowers who were also Pell Grant recipients.

White said the program could be the perfect time for many, especially those going through tough times with the current state of the US economy.

“A lot less stress for a lot of New Mexicans looking, especially in this time of rising inflation and issues involving their ability to afford things like housing and food,” he said.

However, not everyone praises the new initiative.

Tyler Hall, who lives in Roswell, said it wasn’t fair to those who had already paid off their student loans.

Like his wife.

“We’re not going to get anything out of this, even though I worked 80 hours a week to pay off his loans and paid them off before it happened,” Hall said.

Although Hall offered several solutions to end overall student debt, he said it ultimately comes down to interest rates.

“I think the first thing would be to end interest on all loans and start charging people the principal,” Hall said. “I could see that something like that would be very helpful for a lot of people, because it’s the interest that really draws you in.”

Hall also pointed to another problem with student debt: Colleges and universities are raising tuition fees.

He said if people stopped attending these colleges, officials might start charging students less.

“These colleges are increasing tuition year after year because people are willing to take on so much debt. If people stopped enrolling for $100,000 a month or a semester, then the college should start charging less. As long as people pay this amount, then [colleges] will continue to raise their [tuition]”Hall said.

Borrowers interested in applying for the relief program are encouraged to visit the federal website here.

Interested persons have until December 31, 2023 to apply.