Latest student loan forgiveness effort includes thousands of Pa. borrowers

PITTSBURGH — Pennsylvania’s Lieutenant Governor said President Joe Biden’s latest plan to forgive student debt has the promise to right a systemic wrong.

>> What to know about Biden’s latest attempt at student loan cancellation

The latest proposal includes plans to forgive federal student loan debt for borrowers who owe more than they did at graduation.

“Borrowers got there because of accrued and capitalized interest on the loans that they have taken out,” Lt. Gov. Davis told Channel 11. “That interest has steadily risen over time to more than they originally owed. It’s a predatory system, unfortunately, that many folks fall into because they need these resources to go to school.”

The proposal calls for canceling up to $20,000 of the amount beyond what a borrower originally took out. Low and middle-income borrowers enrolled in an income-driven repayment plan could have their entire balance cleared out. The total forgiveness is limited to single borrowers who earn $120,000 or less per year.

“This is an exciting time, particularly for Pennsylvanians who are struggling to re-enter our economy and struggling to deal with rising costs,” Davis said.

Davis, a McKeesport native, told Channel 11 it’s part of a continued promise to support Americans, and in turn, the economy.

“It was quite frankly a financial challenge for my family to help get me through school and one that I’m still paying for today,” Davis said. “It should be a little bit easier for young Americans to get relief when they’re trying to educate themselves and build better lives for them and their families.”

“The plans are just a proposal, but the US Undersecretary of Education said in a release the White House wants the programs to be completed as soon as possible. That same release claims that 101,550 Pennsylvania borrowers have already qualified for relief on their federal student loans, totaling more than $4 billion in relief.”

When asked if the Biden administration had plans to fix the system that allowed borrowers to accrue that much debt, Davis pointed to previous efforts to make college more affordable, lessening the need for borrowing money in the first place.

“At the state level, we’ve tried to do similar programs through our PHEAA grant system but most of those initiatives that are taking place are happening at the federal level,” Davis said.

This latest proposal is part of a larger plan after the Supreme Court rejected Biden’s first attempt at a mass cancellation.

Click here to check your eligibility.

Download the FREE WPXI News app for breaking news alerts.

Follow Channel 11 News on Facebook and Twitter. | Watch WPXI NOW

©2024 Cox Media Group