Forgiveness plan would wipe out one-third of ID student loan debt
About one in three Idaho residents who have federal student loan debt would see it wiped out entirely if the Biden administration went ahead with a $ 10,000 forgiveness plan. This is according to the analysis of the Student Loan Hero website.
President Joe Biden plans to eliminate the debt by executive order. Andrew Pentis, senior writer and certified student loan advisor at Student Loan Hero, said the average monthly loan repayment in Idaho is $ 274.
“Whether you have more or less than $ 10,000 in student loans to repay, this dose of forgiveness would be extremely useful, either in getting rid of your debt or in reducing it considerably,” said Pentis. “So certainly, if you are a borrower in Idaho, you would want something like this to happen.”
The Trump administration suspended federal student loan repayments in March 2020 during the pandemic. Biden extended the break on the first day of his tenure until at least October 1.
Some Democrats want the Biden administration to write off $ 50,000 in student loan debt, but Republicans have pushed back on forgiveness, saying a blank check is not the right answer.
Average student loan debt in Idaho is lower than the national average, but still stands at over $ 32,000 per borrower. Pentis said debt has ripple effects on other areas of life.
“It can be difficult to find room in your budget to afford it on top of your higher priority personal financial needs,” Pentis said, “like just covering your basic monthly bills and dealing with debt. at higher interest, like on credit cards. “
Saturday is National College Decision Day, and groups like the Campaign for Gradual Change Committee will use this day to highlight the stories of people struggling with student debt.