On Wednesday, thousands of Texans were happy as their student loan balance vanished or decreased with President Joe Biden’s loan forgiveness plan. In 2021, the Texas Higher Education Coordinating Board said 56% of Texans had approximately $25,000 in student loan debt.
The debt forgiveness applied to people with low to middle-class income.
President Joe Biden tweeted:
"In keeping with my campaign promise, my Administration is announcing a plan to give working and middle-class families breathing room as they prepare to resume federal student loan payments in January 2023."
Biden canceled $32 billion of student loan debt.
People who received the Pell Grant were given $10,000 erased from their debt on top of the $10,000 that the plan erased.
The University of Houston stated that 34 percent of incoming students took out loans that averaged $6,420.
Texas State University grad A’Naiya Vavis said on Wednesday:
“I’m very stunned and shocked. I didn’t expect to not have any student debt until at least my 30s just because of where I live and the high cost of living. Trying to budget for student loans has always been stressful. And now to have that off my plate is a big relief.”
Aurora Harris who is the Southern regional director for Young Invincibles said:
“Extending higher levels of forgiveness to Pell recipients is a great addition to this plan. This especially helps Black students, [who] have the highest percentage of students, 72%, who receive Pell Grants. With this increased forgiveness, it is estimated that 20 million borrowers will have all of their remaining loan balance wiped out.”
Houston lawmaker Sylvia Garcia wrote:
“Canceling student debt is one of the most powerful ways to address racial and economic equity issues.” the lawmakers wrote. “Student debt cancellation must be one of the key actions in your comprehensive approach to advance equity as our nation works to rebuild a stronger and more equitable economy.”
Were you or know someone who was affected by the loan forgiveness plan?