16 million Americans with student loan debt have been approved for loan forgiveness out of 26 million applicants. But the federal program for loan forgiveness is paused as the Biden administration awaits a Supreme Court ruling.
President Biden's student loan forgiveness program could cancel up to $20,000 of federal debt for students like the one's at Florida A&M University, giving them a chance of financial independence in the future.
"I'm really worried about not being able to pay it in time for it to not affect me or my family," said Micah Barkley, a junior at Florida A&M university. Between her and her mom, she has about $20,000 in student loans.
Barkley is hoping that the Biden administration's student loan forgiveness plan will make a difference in her life after graduation.
"It would really help me like going forward purchasing like if I need an apartment or something like that and not having to worry about interest grabbing up there and also, I wouldn't have to worry about if I can't pay it my credit score going down," said Barkley.
Jerron Lewis is another junior at FAMU. He recently transferred from out of state and has accumulated about $45,000 in student loan debt so far.
Lewis said the forgiveness plan could give him the opportunity to have financial freedom and help him not pay off large student loans.
"Instead of trying to get myself out of a hole, I can try to put myself on top now like 401K stuff, life insurance policies. I can focus on the things that'll push me forward rather than the things I'm already behind on," said Lewis.
Barkley and Lewis are just two of the 43.5 million borrowers that owe federal student loan debt.
Mary Jo Terry is a managing partner at a student loan refinance company, Yrefy. She said although the Biden administrations plan to forgive of up to $20,000 of student loan debt can be helpful if approved, it won't erase all of your debt.
"You're probably still going to owe on your student loans after this whole loan forgiveness piece goes through so be really careful to know how much you owe, what your balance of your loan is, who your loan servicer is," said Terry.
Terry said budgeting tools, economic deferments and income driven repayment programs can all help you start chipping away at your debt.
Her advice to anyone looking to have their student loan debt reduced, "Pay attention and be patient. If they go ahead and pass this through, be patient because everybody's not going to receive that amount forgiven on day one."
The Biden administration appealed the November ruling that struck down the plan to the Supreme Court, who will hear that case starting Tuesday. Terry said if the court decision is made to approve the student loan forgiveness plan, it'll take about 60 days for any loans to go into repayment to then be canceled.
