Valerie Bronstein, a 17-year-old pregnant teenager, found herself in the unfamiliar territory of student loans when she enrolled in a community college in Sacramento, California. Reflecting on her naivety at the time, she admits, “To be honest, I didn’t even know what a loan was. I probably didn’t even understand interest rates until I purchased a car at the age of 24.” Oblivious to the intricacies of financial terms, all she knew was that signing those student loan and financial aid forms would pave her way to education.
In 1993, after completing her bachelor’s degree in English, Bronstein pursued further education by obtaining a teaching certificate and enrolling in a master’s program at George Washington University in Washington, D.C. Her aspiration was to work in museums, but when she became pregnant with twins in 1998, she decided to return to her hometown in search of a secure job. She found stability as a middle school teacher and eventually transitioned into a role as a college English professor, juggling multiple part-time adjunct positions along the way.
When Bronstein, who is now 52, was in her 20s, she had student loans that seemed to follow her everywhere. The expected monthly payments, ranging from $300 to $400, felt like a fortune back then. However, there were moments when the loan payments skyrocketed to astronomical levels that seemed like a cruel joke. “I remember a time when they were going to be around $1,800 per month,” she recalled. “I couldn’t believe it. That’s more than what some people pay for their houses.” To avoid these exorbitant payments, Bronstein sometimes took extra classes to defer the payments, and there were even instances when her loans went into default. Whenever she could, she made payments, but the interest continued to accumulate relentlessly.
When Bronstein completed her master’s degree, she found herself burdened with a debt of around $80,000. However, by November 2023, that amount had skyrocketed to $237,000. Imagine her surprise when she received a letter in the mail stating that her student loans had been forgiven. At first, she thought it was some kind of scam, dismissing the idea of loan forgiveness as wishful thinking. She even called her daughter to share the news, laughing about the possibility of someone tricking her. But her daughter encouraged her to check the loan servicer’s website, which unfortunately was temporarily unavailable. This only heightened Bronstein’s curiosity. Eventually, she managed to access the website on Monday morning, and to her disbelief, it was true. The loan forgiveness was real, leaving her breathless with sheer astonishment.
Bronstein was correct: The U.S. Supreme Court indeed invalidated President Joe Biden’s comprehensive plan for COVID-19 student loan forgiveness in June. This plan aimed to eliminate $10,000 or $20,000 of debt for around 31 million borrowers across the country. However, since then, the administration has shifted its focus towards targeted efforts to forgive student loans for specific groups of borrowers under existing programs. They have been working on addressing administrative issues and simplifying the qualification process. While some borrowers have been patiently waiting for their loans to be forgiven, others, like Bronstein, were taken aback by this turn of events. Additionally, this week, Biden announced a new proposal that could potentially forgive a minimum of $5,000 for approximately 10 million borrowers. However, this forgiveness is still months away and is unlikely to occur before Election Day.
Addressing one of voters’ biggest concerns— the increasing cost of living— can be done through government action, such as student loan relief. This initiative aims to alleviate the financial burden on borrowers by erasing a significant expense from their monthly budgets. However, the effectiveness of these efforts may depend on whether enough voters are aware of President Biden’s actions and are willing to give him credit for fulfilling his campaign promise to tackle the country’s $1.7 trillion student debt problem. Michele Shepard Zampini, the senior director of college affordability at The Institute for College Access and Success, noted that the initial proposal was straightforward and resonated with many people. However, the subsequent process is complex and confusing, leading to a loss of momentum and clarity.
The cost of college and the burden of student loans have seen a significant increase over the past twenty years. During the rise of the Occupy Wall Street movement in 2011, groups of student borrowers started demanding widespread relief. In response, President Barack Obama, with the guidance of then-Vice President Biden, implemented several changes to existing programs. These changes aimed to simplify loan repayments and forgiveness for certain individuals, increase funding for Pell Grants, and provide greater financial support and tax credits for select colleges.
During the Obama administration, borrowers who worked in public service jobs, such as teachers, government employees, and nonprofit service providers, became eligible to apply for loan forgiveness after 10 years of repayment or 120 payments under a 2007 law. However, a 2018 report by the Government Accountability Office revealed that 99 percent of those who applied for loan discharge were denied. One of the reasons for this was that the program required borrowers to be on a specific repayment plan, provide proof of employment during the repayment period, and enroll separately, which often confused borrowers due to unclear rules. The loan forgiveness program faced further obstacles under the Trump administration. Education Secretary Betsy DeVos criticized a forgiveness program that allowed defrauded students to obtain forgiveness, referring to it as too easy and “free money.” As a result, loan forgiveness approvals slowed down under her leadership, and President Trump supported her stance by vetoing legislation that aimed to reverse her policy.
Student debt saw a consistent increase until the onset of the COVID-19 pandemic.
The pause on student loan payments during the pandemic marked a significant milestone, leading to a substantial decline in the overall amount of student debt in 2023. Those borrowers who had previously defaulted on their payments, falling behind for more than nine months, were granted a lifeline. They were given the chance to participate in a program that would not only erase their past due amounts but also restore their loans to good standing. Thanks to the suspension of payments and interest, many borrowers were able to make progress in reducing their loan balances.
Part of the decrease can be attributed to the Biden administration addressing some of the well-known issues with debt relief programs. Previously, borrowers on income-driven repayment plans were required to have their remaining balances forgiven after 20 or 25 years of repayment, depending on the specific plan and when they borrowed. Eligibility was determined based on the number of monthly payments made. However, the Biden administration expanded eligibility by considering additional types of past payments towards the total payment count. This change allowed more borrowers with total and permanent disabilities or those who had attended discredited or closed colleges and universities to seek relief.
The Biden administration implemented a similar approach to public service loan forgiveness by taking steps to ensure that more borrowers’ payments would be counted towards the total required. They achieved this by relaxing strict paperwork rules and including additional types of payment plans in the overall calculation. As a result, many borrowers saw their previous payments retroactively credited.
When October came and loan repayment resumed, the Biden administration introduced a new repayment plan known as SAVE (Saving on a Valuable Education). This plan implemented a cap on monthly payments, ranging from 5 to 10 percent of borrowers’ incomes. It also provided relief for borrowers with low incomes, allowing them to pay nothing each month. Furthermore, the plan ensured that the interest accrued monthly would not exceed the monthly payments, putting an end to the negative amortization process. Previously, even those who made regular monthly payments saw their total loan balances grow over time due to the accruing interest. In my conversations with 20 borrowers, almost all of them expressed their discontent with this unfair interest accrual and called for its cessation. Moreover, the administration established a grace period to prevent borrowers from defaulting during the first year of post-COVID repayment.
In February, Biden made an announcement that individuals with original loan amounts below $12,000 and who had been repaying their loans for 10 years would have their debts forgiven, provided they were enrolled in the SAVE plan.
Before payments resumed in October, numerous forgiveness programs came into effect, primarily impacting individuals who were enrolled in income-driven repayment plans or employed in the public sector, earning less than their counterparts in the private sector. While some borrowers never anticipated loan forgiveness, others believed they were still far from meeting the eligibility criteria.
Many other borrowers I spoke to expressed a similar sentiment as Bronstein, stating that they were unaware of the implications when they initially borrowed money. Megan Shaeffer, who took out her first college loans in the 1990s, shared her experience, saying, “The way it was presented to everyone was that this is how you finance your education now.” Shaeffer’s parents, coming from a generation when college was more affordable, were not prepared for the financial burden of her education. She added, “The expectation was that after college, you would secure a well-paying job and be able to make the loan payments.” Shaeffer believes that it has taken years for people to realize that these expectations did not come to fruition for many individuals.
When Tim Fitzmaurice, a teacher in New York, received the news that his loans had been forgiven, he was taken by surprise. He recalled how, when he first started working, his paychecks were so meager that they barely covered his expenses. Seeking help, he contacted his student loan servicer, who directed him towards forbearance instead of informing him about more affordable options like the PSLF program or other repayment programs. Under forbearance, he had the freedom to skip repayments for a year at a time, but interest continued to accrue and was added to the principal balance, causing his loans to grow over time.
It was only when Tim’s mother heard Senate Majority Leader Chuck Schumer discussing public service loan forgiveness on TV that he became aware of the program. Determined to find out more, he immersed himself in research, though he found the forms to be perplexing and discovered that some of his previous payments did not qualify. However, when President Biden made changes to the program, Tim’s years on forbearance, during which he had not made any payments, were suddenly taken into account. Keeping up with the latest forgiveness news on Twitter, he logged into his account one day and was astonished to find that his balance was zero. He experienced that moment of overwhelming relief that so many others have described.
During my interviews, the individuals I spoke with were well aware of the challenges associated with qualifying for loan forgiveness. They had previously been unsure whether their loans would ever meet the eligibility criteria. Cameron Clark, a 50-year-old county attorney in Florida, for instance, had even received refund checks due to overpayment. However, even those who did not receive refunds now find themselves with additional funds each month, which they can allocate towards long-awaited necessities. Many of them mentioned using the extra money for purposes such as saving more for retirement, replacing old and worn-out vehicles, taking care of aging parents, or finally purchasing a home. There are also those who are still working towards paying off their other student loans, with hopes of qualifying for forgiveness in the near future. However, they remain uncertain about their eligibility given the incremental nature of the announcements made by the administration.
Most individuals experienced not just a financial relief, but also an emotional release when their loans were forgiven. The burden of loan balances weighed heavily on them, and the cancellation lifted that weight. The consequences of student debt can be more significant than many realize. Micah Burkey, a 38-year-old urban planner from Chicago, shared the heartbreaking story of his older brother, Adam, who had a learning disability and couldn’t complete college but still carried over $100,000 in student debt. Tragically, Adam took his own life in 2014. Burkey believes that if there were different bankruptcy laws that included student loans, his brother might still be alive today. This personal experience adds an extra layer of significance to the debt and the suffocating feeling it brought.
Burkey believes that the Biden administration should take further action to alleviate the burden of student loan debt. Shaeffer and other voters also share this sentiment, emphasizing the need for a more comprehensive approach to addressing the increasing cost of higher education. Shaeffer personally understands the impact of having significant debt looming over her, highlighting the difference it would make to be free from this financial burden. She acknowledges that without loans, she would not have been able to obtain her degrees due to the exorbitant cost of education, which continues to pose challenges for many students.
Biden’s proposal to expand loan forgiveness will need to go through the federal rulemaking process, which includes a public comment period. The forgiveness would apply to individuals whose loan balances have increased due to accrued interest, those who meet the requirements for forgiveness but haven’t applied, and those who have been repaying their undergraduate loans for 20 years, among other eligible borrowers.
According to Mike Pierce, the executive director of the Student Borrower Protection Center, a group that advocates for student borrower relief, there is a lack of awareness among voters regarding the smaller, targeted relief programs that have been implemented. He mentions that people are aware that the promised debt relief for tens of millions of individuals in 2022 has not been successfully delivered.
According to a November survey from YouGov/Blueprint, 84 percent of registered voters were aware of President Biden’s plan to forgive $10,000 in student loan debt. However, only a narrow majority of 52 percent actually supported this plan. On the other hand, there is less awareness regarding more targeted relief efforts. In a recent Ipsos Poll on Consumer Behavior, 56 percent of respondents were familiar with a specific instance of loan forgiveness. In a YouGov poll conducted from February 8-11, 55 percent of respondents stated that student loan debt was somewhat or very important to them. However, when it came to forgiveness, 44 percent believed borrowers should have to repay their loans, while only 40 percent believed the government should forgive them. Notably, there is a significant partisan divide, with 68 percent of Democrats supporting government forgiveness, compared to only 17 percent of Republicans.
English professor Bronstein from California is unsure if it would be beneficial for more individuals to be informed about the targeted relief. She believes that Joe Biden may need to keep it a secret due to the potential jealousy it could provoke.
“But simply forgiving student loans won’t suffice for many individuals who continue to grapple with the burden of high living expenses,” expressed Brittany John, a resident of North Carolina and a child welfare worker whose loans were forgiven. She candidly shared, “I still can’t afford to make ends meet, unfortunately. That’s the reality I’m facing.” Despite the relief she experienced and her gratitude for the forgiveness, Brittany acknowledged, “It certainly provided a sense of relief, and I was genuinely overjoyed. It also restored my faith that sometimes the right thing can happen, or that the government can assist ordinary people. I am thankful for that. However, I am still facing ongoing challenges. That’s my current situation.”
This story contains a sensitive topic regarding suicide. If you or someone you know is in need of assistance, please reach out to the national suicide and crisis lifeline in the U.S. at 988. You can also access their online chat service at 988lifeline.org.