Sacramento State students react to Biden’s student debt plan
Financial advisers say President Joe Biden’s plan to provide at least $10,000 in debt cancellation for millions of Americans could have a positive impact on your credit score. Borrowers who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for the $10,000 loan forgiveness. Recipients of the Pell Grant, which is given to students applying for undergraduate degrees experiencing financial hardship, would be eligible for another $10,000. Pam Rodriguez, vice president and financial adviser with Captrust, said you’ll want to watch your credit score over the coming month. She says you should see a higher credit score, which means better opportunities for more people.”Especially in today’s environment because interest rates are so high. Let’s say you’re getting ready to buy a house, this could really help you if it improves your score enough to get you in that next level of reduction in an interest rate for a mortgage,” Rodriguez said. Some students at Sacramento State say they’re excited to know they could leave school in a better position.”They’re always increasing the rates of tuition and they kind of ignore all of the students and the burdens that they have to face financially. I feel like this is one of the best options to level the playing field to make sure that people can go college and can get out with as little debt as possible,” said Beth Agbassekou, a junior at Sac State.The bottom line is students need help to pay for school and this will take a little off their plates.”It’s awesome. It’s such a stress relief. Now we can focus on school and not have to focus on that part,” said Yasmine Hernandez.
SACRAMENTO, Calif. —
Financial advisers say President Joe Biden’s plan to provide at least $10,000 in debt cancellation for millions of Americans could have a positive impact on your credit score.
Borrowers who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for the $10,000 loan forgiveness. Recipients of the Pell Grant, which is given to students applying for undergraduate degrees experiencing financial hardship, would be eligible for another $10,000.
Pam Rodriguez, vice president and financial adviser with Captrust, said you’ll want to watch your credit score over the coming month. She says you should see a higher credit score, which means better opportunities for more people.
“Especially in today’s environment because interest rates are so high. Let’s say you’re getting ready to buy a house, this could really help you if it improves your score enough to get you in that next level of reduction in an interest rate for a mortgage,” Rodriguez said.
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In keeping with my campaign promise, my administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023.
I’ll have more details this afternoon. pic.twitter.com/kuZNqoMe4I
— President Biden (@POTUS) August 24, 2022
Some students at Sacramento State say they’re excited to know they could leave school in a better position.
“They’re always increasing the rates of tuition and they kind of ignore all of the students and the burdens that they have to face financially. I feel like this is one of the best options to level the playing field to make sure that people can go college and can get out with as little debt as possible,” said Beth Agbassekou, a junior at Sac State.
The bottom line is students need help to pay for school and this will take a little off their plates.
“It’s awesome. It’s such a stress relief. Now we can focus on school and not have to focus on that part,” said Yasmine Hernandez.