SACRAMENTO, Calif. — Students and universities around Sacramento said it's a much-awaited time for students who owe thousands of dollars in federal loans.
"To have President Biden go out there and announce that he is doing loan forgiveness and how impactful that's going to be for students here in California is amazing," said Salma Pacheco, the president of the Associated Students, Inc. for Sacramento State.
President Joe Biden announced his student debt relief program on Wednesday.
"First off, the plan includes $10,000 of debt forgiveness if you make less than $125,000 or if you're married with a household income less than $250,000. If you are someone who used Pell Grants to go to college, that number doubles to $20,000 in debt forgiveness," said Johnny Gottstien, president and CEO of GPIS and also known as a financial and insurance professional.
Robert Nelson, the president of Sacramento State University, says it has the potential to make a significant impact.
"About half of those students take out loans each year and half graduate without any debt. But the half that do graduate can graduate with up to about $24,000 in debt. Basically, what would happen with this is their debt would be cut in half, and if they have a Pell Grant, it would be completely wiped out," Nelson said.
Pacheco represents all of Sacramento State's 31,000 students. She says the program will help those who struggle with saving money and that it also opens up the door for students seeking higher education.
"If they had to pay for their bachelor's degree, they're probably less likely to go for a graduate degree because of the financial impact it'll have on themselves or their family. So imagine how many more people of color, how many more students that come from low-income areas that didn't think this was a possibility - now (they) are given that opportunity," Pacheco said.
While there are people on both sides of the fence, Nelson believes in the end that it will further a lacking workforce.
"I know a lot of people have seen negatives in worrying about inflation. The numbers today say we may or may not be in a recession, but I think that this will actually go into the workforce. And that is exactly what we need right now," Nelson said.
We also reached out to California Community Colleges.
They sent the following statement:
These actions address only part of the college affordability crisis and highlight the need for more student grant assistance, such as doubling federal Pell Grant awards and continuing with work that is underway in our state to help more students.
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