BISMARCK, N.D. (KFYR) – On Friday, the Biden Administration announced they will cancel $5 billion in student loan debt for 74,000 borrowers.
Financial advisor David Wald says the administration is looking at borrowers who have been in public service jobs for ten years. He says it’s another part of President Biden’s campaign promise to forgive student loan debt. Wald thinks Biden causes some anxiety in people who have paid their debt and those who have been responsible for their student loan debt. He says those borrowers feel slighted for having to pay for people who still have debt to pay off. Wald says this sets the precedent for future borrowing, meaning borrowing as much as you can hoping it will be forgiven.
“The mechanics of it have been struck down on the Supreme Court, so he’s going to have to be very selective. I don’t know how broad of a range he has to do the student loan forgiveness for more than just a select group of people,” said Wald.
Wald says if you are not one of the 74,000 borrowers that this covers, people should be diligent with making payments toward their student loans. He says people should not put their loans into forbearance like they are allowed to do because the debt and interest will keep accumulating.
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