Borrowers hope for federal student loan forgiveness

BIRMINGHAM, Ala. (WBRC) – High student loan debt is forcing millions of graduates to empty their new paychecks to pay off those loans.

Like many people in debt, it’s at the forefront of Amber Hayes’ mind and wallet. She says it makes her afraid to pay for other basic necessities.

“And the gasoline in my car?” ” she asked. “And my groceries? What about my phone bill? »

For many college graduates with student loan debt, these constant questions are their reality.

“I just want to get to a day where I can stop at Chick-fil-A and buy myself a number one and not have to check my bank account afterwards,” Hayes said.

She graduated from the University of Montevallo in 2020 with a degree in musical theater. She has student loan debt of $68,000, which qualifies her as difficult to manage.

Marshall Clay, partner and senior adviser at Welch Group, says that nationally there is about $1.7 trillion in student loan debt currently owing.

Because so many people owe an incredible amount of money, there are tons of people paying close attention to the discussion surrounding federal student loan forgiveness.

“Help us !” said Hayes. “Come on. We’re going to buy stuff, we’re going to put it back in the country so why not help?

No matter how much debt is forgiven, as Clay says, it doesn’t necessarily go away.

“It’s not eliminated,” he adds. “It’s just transferred from individual borrowers to the US taxpayer.”

Clay says he read this week if $10,000 in student loan debt were forgiven everyone who owes money, it would amount to about $320 billion.

It’s a big number and a big decision to make. Even so, Hayes says it would be a great personal help for anyone awash in debt.

“If that happens, I’m probably jumping, jumping!” She adds.

President Joe Biden is expected to announce his decision on federal student loan relief in the coming weeks.

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