Lawsuits, confusion continue to plague Student Loan Forgiveness Program
LINCOLN, Neb. (KLKN) – After President Biden announced a massive student loan forgiveness program in late August, there’s been confusion about how it works.
Despite this confusion, many students seem to be happy with it.
“I think it’s really important that President Biden did that,” said UNL student Charlee Sharack. “As he was campaigning he talked a lot about relieving student loans, and finally putting that word into action is really important.”
According to the President’s initial tweet, borrowers making under $125,000 annually will have $10,000 of debt forgiven, with Pell grant recipients getting up to $20,000 erased.
While many students seem happy about the move, the plan is still facing harsh backlash.
“The government doesn’t have any money, they never have any money,” said financial planner Bob Bennie. “The only money government has, it confiscates from the taxpayers or creates out of thin air.”
Nebraska is one of six states suing the federal government over the loan forgiveness plan’s legality, with Nebraska Attorney General Doug Peterson arguing the President misinterpreted a 2003 law.
Yet another issue seems to be unclear messaging about the next steps of the plan.
“I didn’t honestly really know about it until maybe like a week or two ago,” said Sharack. “They’re not doing the best outreach and I think that’s where a lot of the confusion comes from.”
Under the loan forgiveness program, over 200,000 Nebraska students would qualify for debt relief. No specific date has been announced for when the application goes live, but the federal government continues to say it will be available in October 2022.
EDIT: In the video, we reported the annual income to be eligible for the loan forgiveness program was $150,000. Additional sources have confirmed the eligible income to be $125,000.