Student loan forgiveness appreciated but confusion still looms

As the Biden Administration announced plans to forgive thousands of dollars for many Americans with student loan debt, many of those still paying their loans were left with both gratitude and questions about equity. Some graduates from Colorado State University in Fort Collins told CBS4 that they were thrilled to accept the loan forgiveness but were also concerned that it wasn't enough to make college more accessible or affordable for low and middle-income families.  

"As a young professional this helps an incredible amount," said Avery Martin, a 2020 graduate of CSU.  

Sara Ross, a fellow CSU graduate, said the $10,000 loan forgiveness she qualifies for will cut her current debts significantly.  

"It will basically cut my loans in half, I am very fortunate," Ross said.  

However, both Ross and Martin said they were fortunate to have parents who helped them get through parts of college through financial aid. Both of their parents took out loans to help them through college, and now their parents are still being held to those loans.  

"I did take out loans and my parents did take out loans," Ross said. "(Having the loans) limits us of what we are doing every day if you go out to dinner with friends or go out for a movie." 

Martin, who only has $8,000 in student loan debt, was thrilled that the recent announcement meant he no longer would have any debt. However, since his parents also took out loans, he said he now planned to turn some of the money he used to pay for his loan and will now send some of it to his parents instead.  

Both Martin and Ross said they hoped this would be just the start of a movement to make higher education more affordable, in turn making it more accessible to all.  

"This is definitely a great first step, but it doesn't solve the problem in totality," Martin said.  

Jon Donlay, Director of Financial Aid at CSU, said his office was already fielding countless inquiries about how this will impact student loans.  

"It is one of the biggest announcements related to federal student aid programs in the history of federal student aid programs," Donlay said.  "We have had a lot of questions and interest behind this. It should be impactful for low and middle-income families who qualify." 

Many have also been asking if the loan forgiveness also applies to current students, something Donlay said the university is still trying to figure out.  

While many of those who benefit from the forgiveness are welcoming the help, there are others who are opposing the move. Many elected republicans warned that the decision could have been politically motivated during an election year, while others suggested that the action was financially irresponsible for the government and could lead to greater inflation.  

"Just think about how unfair this is for all of the Americans who are harmed by this who are now on the hook for hundreds of billions of dollars of other people's loans," said Tom Cotton, a Republican Senator from Arkansas.