LITTLE ROCK, Ark. – On Wednesday, President Biden announced his plan for student loan forgiveness, offering several thousand dollars of relief for those who qualify.
The announcement from President Biden comes with mixed responses from people in Little Rock. Some are in support, but many are questioning what this is going to cost us.
The student loan forgiveness plan provides up to $10,000 dollars in forgiveness for those who make less than $125,000 a year.
If you went to college on Pell Grants, you can get up to $20,000 in forgiveness.
“I fully endorse what he is doing, and I hope there is more like it in the future,” said Ian Redford, who is in support of the plan. “It would free me up to spend my money in ways that are more productive to society.”
Meanwhile, Richard Douglas said while he will certainly benefit from the plan because of his own student loan debt, he is worried it will come at a price for Americans.
“The question is where is the money coming from?” Douglas asked. “It’s got to come from somewhere.”
According to a Penn Wharton budget model, the plan will cost taxpayers around $300 billion.
The Census Bureau reports about 24% of Arkansans actually have college degrees.
“I’ve always thought it was immoral to put a paywall behind education,” Redford said.
President Biden said he is also extending the student loan pause one last time through December 31, 2022.
“Everything seems to be a mess as it is,” Douglas said.
Despite concern from Americans like Douglas about this coming from the taxpayer’s pocket, the President is calling his plan “responsible and fair.”