‘A big letdown.’ Kentuckians react to Supreme Court decision on student loan debt forgiveness
The Supreme Court struck down President Joe Biden’s student loan forgiveness plan last week, under which more than half a million Kentuckians could have had debt forgiven, according to estimates from the White House.
The court’s conservative majority said only Congress could authorize large-scale debt cancellation of government-provided loans.
When Biden’s plan was announced last fall, Kentuckians told the Herald-Leader about the relief they would feel if their student loan debt was forgiven. A 2021 study from the Kentucky Center for Economic Policy found that 209,400 residents would have had their loans entirely forgiven under Biden’s plan, and another 406,200 Kentuckians would have a portion of their debt forgiven.
Under the proposed plan, people who earn less than $125,000 a year, or families earning less than $250,000, would have been eligible for $10,000 of loan forgiveness. Recipients of Pell Grants, which are reserved for students with the most significant financial need when attending college, would have had up to $20,000 of debt forgiven. The ruling issued Friday means that will not happen.
Following the court decision last week, the Herald-Leader again polled readers about their thoughts. Sixteen people responded to the poll, giving their thoughts on the ruling and sharing how it impacts them.
Readers were split on the student loan debt forgiveness plan. Half said they supported Biden’s plan, and half said they did not support the plan.
Responses varied from disappointment to approval
Some respondents wrote about the need for affordable higher education, and the disappointment that came with having to make significant payments towards student loans. Several of those who were in favor of the original debt forgiveness plan said they were disappointed but not surprised at the Supreme Court’s ruling.
“It was a big letdown,” Wayne Wilson wrote. “School is expensive and the cost will continue to drive low income kids away because of the inability to pay.”
“I have been paying my student loans for 15 years,” Michele May wrote. “I have paid back the full amount that was borrowed and I STILL owe the same base amount as when I started.”
Some of those who supported the plan said if their loans had been forgiven, they would have had more opportunities and money to contribute to the economy and workforce.
“I appreciate it when people say borrowers should pay the money back, but also the reason we took out the loans was to contribute to society and be in the work force,” Wilson said. “If no one went to college, grad school, medical school, or law school because they couldn’t afford to pay back what they borrowed would America be better for it?”
“I truly believe that if we can find the money to bail corporations out, we can find the money to forgive student loans when the borrower has paid back what was borrowed,” May said.
Others said they were pleased about the Supreme Court ruling, saying it protected taxpayers. Several of the respondents who agreed with the ruling expressed concern about the plan, if it had proceeded, increasing inflation and taxes.
“Allowing a president to unilaterally eliminate a debt sets a terrible precedent for separation of powers as well as transferring the debt incurred to a group of people who did not take out loans, many of which did not even attend college,” said Mark Lyle. “Individuals who worked to pay off their debt would have been penalized for following the rules.”
“Myself and millions of others payed our loans back, we should not have (to) be forced to pay some else’s,” William Riffe wrote.