NORFOLK, Va. — The Biden administration announced it would automatically forgive $39 billion in student debt for 804,000 borrowers.
Scripps News
Here's who qualifies for Biden's student loan forgiveness programs
The Department of Education said Friday that the relief is being provided for individuals on income-driven repayment plans, in which the federal government cancels remaining balances for the borrower after they have made their payments for 20 or 25 years.
However, Earl Douglass, of Hampton Roads, believes people should be responsible for paying off their own degrees.
"You go out there and make your money and you’re good to go," Douglass said. "I don’t think we should be bailing these people out at all. I went to college, to Virginia Tech."
Douglass said he doesn’t like the sound of student loan debt relief being given after he say he paid off his student loans a few years ago.
"You took that loan out and you should pay it back," Douglass said.
Another Hampton Roads resident, Monica Baker, disagrees with this but for a different reason.
"I do feel like it’s an unfair advantage. I feel like they should do it for people who just got out of school. Instead of people who have already been paying for 20 years," Baker, who is also a recent college graduate, said. "Like what about us? We’re trying to pay and we’re struggling."
The Biden administration's latest attempt to forgive student loan debt comes after the Supreme Court struck down Biden’s student loan debt relief plan. It would have forgiven up to $20,000 in federal student loans.
Old Dominion University Economist Bob McNab warns there could be consequences in the long run.
"This is not free. There is no such thing as a free lunch. You’re forgiving people’s debts today and you’re imposing those costs on future taxpayers," McNab said.
As to why the current administration is giving this relief, the White House claims there were historical errors in record keeping and released a statement saying in part quote "Some qualifying payments made under Income-driven repayment plans that should have moved borrowers closer to forgiveness were not accounted for.”
"Likely this will be taken up in court. Somebody, somewhere is going to sue about this. I suspect state attorneys general," McNab said.
The Education Department will notify eligible borrowers in the coming days.
