Opinions in New York mixed on Biden's student loan forgiveness plan
FARMINGDALE, N.Y. -- President Joe Biden made a major announcement on reducing student loan debt Wednesday.
It comes just as college students arrive on campus, many already saddled with huge loans.
Hussein Rifath and other college students were volunteering to clean litter in their communities as they digested the president's long-awaited plan to forgive federal student loans.
Biden says the government is forgiving $10,000 in federal student loans for anyone earning less than $125,000 a year, and $20,000 for those receiving Pell Grants due to exceptional financial need. Anyone with federal undergraduate loans will have repayments capped at 5% of monthly discretionary income.
READ MORE: Biden cancels up to $20,000 in student loan debt for millions of Americans, extends payment pause
"Getting into debt is frightening ... I've gotten at least 11 envelopes from companies offering me low-interest loans," Rifath told CBS2's Jennifer McLogan.
Mayor Waylyn Hobbs, of Hempstead Village, is still repaying his student loans.
"I wish they would just forgive everybody's student loans, if it was possible, but I think, again, something is better than nothing," he said.
Critics say the plan shifts the loans onto backs of people who didn't take them and can afford it the least.
"I'm really not for this. I don't think it's a good idea," one woman said.
The Kalins of Franklin Square spent years paying off their child's student loans.
"You guys struggled to repay the debt, and now you're not going to see any of this benefit," McLogan said.
"Not at all," Kalin said.
"I paid her college as a mortgage," his wife said.
Democrats praising the plan are hoping the move will galvanize support.
Watch Jennifer McLogan's report
The White House says costs of attending college are skyrocketing and federal support must keep pace.
Student debt is considered a gateway issue for younger voters, affecting their views and decisions on career choices and housing affordability.
"Many people can't qualify for a mortgage to buy a home because of the debt they continue to carry," Biden said Wednesday.
CBS2 asked political analysts if it's a presidential ploy to buy votes.
"By reducing student loans, by wiping out some of the debt, he's going to appeal to younger voters and younger families who are going to help their kids," political analyst Lawrence Levy said.
"We go right from school and into the workforce, and we have other bills to pay and to have loans on top of that, it's really difficult," said Jason Vasquez, a college student in debt.
"I want to say to all the students and their families who are out there, college and university is ultimately a great return on their investment," Farmingdale State College President John Nader said.
Rifath agrees -- debt relief and all.
"College is a way for students to go and branch out their wings and fly," he said.
CBS2's Tony Aiello talked to Alex Acosta, a student at SUNY Albany, and Giana Angell, a University of Rhode Island student. Together, they have more than $150,000 in student debt. They will both apply for the relief outlined by the president.
"It's $10,000 less I have to pay, so I'll take it. I'll take it indeed," Acosta said.
Forty-three million Americans owe federal student debt.
A recent poll shows 55% of Americans support forgiving $10,000 in college debt, but only 47% support forgiving $50,000 and 41% support wiping out all college debt as some of the left have advocated.
Angell is glad for limited relief, but says, "I'm more concerned about who's paying for that? Who's taking care of that? Who's the one taking the $10,000 off of mine and his and every other student loan debt?"
Some Republicans give the Biden plan failing marks.
"It is hurting people who paid off their own debts who are now going to pay higher taxes to pay off the college debts of often much wealthier people than they," Sen. Ted Cruz said.
Biden's authority to forgive student debt is expected to face a legal challenge.
The president also announced federal student loan holders won't have to make payments through the end of this year, continuing the "pandemic pause" first put in place in 2020 by then-president Donald Trump.
After Biden's announcement, some student loan websites reportedly crashed because so many people were trying to check their balances. Borrowers were getting messages that the sites were experiencing an extremely high volume of visitors.
