HAMPTON ROADS, Va - The U.S. Supreme Court is considering President Biden's plan to forgive student loan debt for more than 40 million Americans. After numerous lower court challenges, the program is on hold until the Supreme Court justices decide.
The president raised concern that the Supreme Court may decide to strike down his student debt cancellation program after several conservative justices expressed skepticism.
Meanwhile, Hampton Roads residents said student loan debt forgiveness would bring them huge relief.
"If we can get it forgiven, that gives us a step ahead in terms of coming from poverty because I grew up in poverty," said Desi Flores, 40, who is a first-generation college student with thousands of dollars worth of loan debt.
"I’ll probably have about $20,000. But I’m not done with my education. I’m determined," Flores said.
Under the plan, up to 43 million people would be eligible for some federal student loan debt relief. People making less than $125,000 a year could see $10,000 in student loan debt forgiven, and people who got Pell Grants could get up to $20,000 dollars forgiven.
"I have gotten Pell Grants for every school I’ve attended," Flores said.
But if student loan debts are forgiven, one expert says it could have a big impact on taxpayers. Former Old Dominion University president and economist James Koch warn about how this will impact the federal deficit.
"[The government is] going to assume about $500 billion dollars of student loan debt. So that’s going to increase the national debt. Somebody is eventually going to have to pay for that," Koch said.
Koch says taxpayers will be bearing the costs.
"That will increase the deficit. Eventually, younger people...are going to have to pay for that, either by paying increased taxes or by receiving fewer benefits," Koch said.
Kock warns student loan forgiveness will contribute to college expenses rising.
"Universities might look at this and say ‘we can raise tuition because President Biden is going to come along and forgive the student debt anyway,’" Koch said.
Michel Roldy, of Hampton Roads resident, said he has close to $50,000 in student loan debt.
"I am a first-generation college student. It would be a huge relief. I’m planning on buying a home in two years," Roldy said.
The Congressional Budget Office says the program to forgive student loan debt will cost more than $430 billion.
The Supreme Court is set to make its decision by the end of June.
