Kansans react to President Biden scaling back loan relief
WICHITA, Kan. (KAKE) - The Biden administration scaled back part of its student loan forgiveness plan. Legal challenges in court are happening and the application for relief is expected to come out soon.
Nearly 800,000 borrowers are impacted by this scale back. It’s to protect the program against legal challenges. And people could soon apply for up to $20,000 in student loan relief in just a few weeks.
"For me, I've got a little baby, I've got a wife. And when we see our student loan debt number drop and we don't have to do really anything for that to happen, that's a great feeling,” said Miguel John, a Wichita Resident.
Miguel Johns is explaining to us how student loan debt relief could impact him. He has $11,000 in student loan debt. $10,000 of relief would bring his student loans down to $1,000.
Just recently the Biden Administration scaled back its student loan forgiveness for those with Perkins Loans and Federal Family Education Loans. 770,000 borrowers no longer qualify for forgiveness.
Kansas and five other states are suing the Biden Administration over the student loan forgiveness plan. In part because they say the President does not have the authority to do that without Congress. But the Biden Administration argues they do base it on a 2003 law. Kansas Attorney General Derek Schmidt filed the lawsuit. "I'm standing up to challenge the legality of this Biden maneuver that makes hardworking families bear the cost of repaying student loans that were voluntarily undertaken by college graduates in families earning up to a quarter-million dollars per year," Schmidt said.
Some borrowers believe they should pay back their loans themselves.
"I made the decision to go to school. And I knew the debt I was going to be going into. I should pay for it. I don't think somebody else should be responsible for the debt I took on,” said Chance Myatt.
While others look at student loan relief as getting ahead on their small business.
"That would be 12 grand that I could use to put towards like my dance business for example. I haven't really had the opportunity to invest in Baila Wichita,” said Elisa Rosales a Wichita Resident.
And make their dreams come true like having their own dance studio.
"Currently, I don't have a studio space. I haven't felt financially comfortable or stable enough to make that big leap,” said Rosales.