Local students celebrate as loan forgiveness program launches
DULUTH, MN. (Northern News Now) - If you have federal student loans, a new government program may be able to offer some financial help.
President Joe Biden officially launched the Education Department’s Student Loan Forgiveness Application Monday, and already millions have applied.
Under the plan, people can qualify for $10,000 of forgiveness on their federal loans or $20,000 for Pell Grant recipients.
There are income limits to qualify: $125,000 per year for individuals and $250,000 for households.
The program is open until December 31st, 2023.
For many students, senior year in college is fun, but also a little stressful.
“I’m excited to graduate. I’m excited to start my life, but I don’t exactly know what direction I’m going in,” said Brooke Dreyer, a senior at UMD.
Brooke Dreyer, originally from Rochester, is now a psychology major, graduating this spring.
“I just enjoyed all my classes. I like a lot of the programs that they do here,” Dreyer said.
She’s one of the millions of people who applied for student loan forgiveness Monday.
Dreyer said the program will allow her to graduate from school this spring debt free.
“I feel a little bit relieved because I won’t have student debt really to pay off,” Dreyer said.
Katie O’Donnell is a junior at UMD.
“I love going to school here. I love just being able to learn so many cool things,” O’Donnell said.
She plans to apply for the debt relief this week.
O’Donnell said the forgiveness should be enough to pay for most of her loans for UMD, which will help her afford the training needed for her dream career.
“I’m studying biology and I’m hoping to go to med school,” O’Donnell said.
And for Dreyer, she’s hoping the forgiveness will make her transition to early adulthood a little smoother.
“If I still had those loans, I’d be paying them off instead of being able to focus on like, a place to live,” Dreyer said.
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