Borrowers await student debt relief
(CNN) — The Biden administration is encouraging those eligible for student debt relief to continue applying online, despite a court-ordered temporary suspension.
It may take a little longer, but Cody Hounanian hopes that a third of his student loan will be forgiven.
“It’s a light at the end of the tunnel.”
He refers to President Joe Biden’s student loan forgiveness program that would cover $10,000 of his student debt.
Because even though he hasn’t attended college in 9 years, he still owes $30,000.
“I recently got married, my wife and I are going to be thinking about buying a house. So all of a sudden it’s in front of me again because I’m thinking about the kind of debt I have and need to finance my future and get a house.”
A move pleaded in and out of court
But as the administration expected to grant loan releases as early as Sunday, a federal appeals court temporarily suspended the program.
A decision currently being debated in and out of the courtroom.
USC economics professor Robert Dekle says that while all of his students support the program, he has asked them to consider different perspectives.
“Compared to defense spending and the overall government budget, and the annual cost is not huge, but there is one. It’s going to be a burden on current taxpayers.”
Cancellation of loans will worsen inflation
He also says that if the goal is to help low-income families, the government should invest in early childhood education instead.
As an economist, Dekle says he thinks short term.
Canceling loans will only make inflation worse.
But as a professor, he believes that in the long run it will make the United States more competitive.
“We need competent people and the way to get that is through higher education.”
And it was this upbringing that, according to Hounanian, got him to where he is today.
He is the executive director of the Student Debt Crisis Center.
The center is a non-profit organization whose goal is to end the student debt crisis.
“For me, the only way to open the door was to take out a student loan even though it created some really unnecessary challenges and you know, we had to stress and stuff, but my future is brighter nonetheless.”
Now, not only is he waiting for his loan to be canceled, but he is also fighting so that others can get relief too.
“My dream…for a better America…is one where my kids don’t even have to worry about student debt.”