‘It will be such a relief.’ Here’s what Kentuckians plan to do after student loan forgiveness
For some Kentuckians, the news that their student loan debt could soon be erased was exciting news.
“I have student loans that will outlive me (I’m 63 now),” Vickie Naylor wrote in response to a Herald-Leader poll. “It will be such a relief to get out from under this never-ending burden!”
Borrowers who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for $10,000 of loan forgiveness, President Joe Biden announced Wednesday. Recipients of Pell Grants, which are reserved for students with the most significant financial need, would see up to $20,000 of loan debt canceled.
In Kentucky, the plan could mean 209,400 residents would have their loans forgiven entirely, a 2021 study from the Kentucky Center for Economic Policy found. Another 406,200 Kentuckians would have a portion of their debt forgiven.
After Wednesday’s announcement, the Herald-Leader asked Kentuckians to respond to a series of questions related to the plan. As of Friday morning, the Herald-Leader received 39 responses to the poll.
When asked if they support Biden’s student loan forgiveness plan, 61.5% of respondents said they did, and 38.5% of respondents said they did not. Respondents had an average of $25,000 in student loan debt they had not yet paid off, and a median student loan debt of $8,000, according to information they provided in the survey.
Student loan debt is a ‘never ending burden’
For some, the loan forgiveness means one less bill that they have to pay each month, and a way out from under debt that has followed them since early adulthood. Others said they fear this means they’ll be responsible for higher taxes.
Multiple respondents said they plan to put money they would have used toward student debt toward purchasing a home, graduate school or paying down other debts.
“I have been paying on student loans for 22 years ($38,000) and made maybe $4,000 dent,” Stephen Broughton wrote. “This will free up some money for other bills!”
Multiple people said they will feel more confident in pursuing a graduate or doctorate degree, knowing their debt could now be lower. Others said student loan forgiveness will simply make paying monthly bills easier.
“It opens up more money for general living expenses, which have skyrocketed in the last eight months,” Christina Barone wrote.
“I have worried about what my plans are for post-graduation — with rising rent prices and overall cost of living,” Abbey Rodgers, a current college senior, wrote. “Having this $10,000 removed will provide me with so many opportunities that were limited.”
Others opposed the plan, saying they feared an increase in taxes to help cover the cost of widespread student loan forgiveness. Some of those against the plan said they had no current student debt, while others had some remaining.
The most common concern cited about Biden’s plan was worries about taxes being increased to cover loan forgiveness, according to multiple responses.
“I agreed to (my) student loan as a way to pay for college,” Calvin Roberts wrote. “I paid my loan off like a responsible adult. If I could not have afford(ed) the loan, then I should have made other choices.”
About the survey
The survey was posted on Wednesday afternoon, with results gathered until Friday morning. In that time, 39 responses were received
Questions included in the survey were:
- Are you in favor of Biden’s student loan forgiveness plan?
- How will student loan forgiveness impact your life?
- How much student loan debt do you currently have?
- Under this plan, how much student loan debt would be forgiven for you?
- Will any part of your life become easier under this loan forgiveness plan?
- What do you plan to do with the money you’ll save by your debt being reduced?