DENVER — Millions of Americans will have to wait until next year to find out if thousands of dollars of their student debt will be forgiven. The United States Supreme Court is expected to rule sometime next year on the student loan forgiveness program.
The debt forgiveness plan announced in August would cancel $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income.
Kerline Eglaus, the Executive Director of Financial Aid and Scholarships at Metropolitan State University Denver, said forgiving thousands of dollars could mean a lot to millions of students.
"I too got very excited. I have lots of loan debt. I'm a first-generation student and a lot of our students have similar backgrounds. It was very hurtful to see that program come to a pause," Eglaus said.
"Pell-eligible students mostly are students of color, and they were expected to see up to $20,000 forgiven," Eglaus said. "What that could have done for many students is provide them a bit of financial freedom to be able to do things like buy a home, make a living for their family."
According to the Education Data Initiative, Black and African American college graduates owe an average of $25,000 more in student loan debt than white college graduates. The Education Data Initiative also reported student loan debt forgiveness would immediately increase the wealth of Black Americans by up to 40%.
In the meantime, Eglaus said, the biggest gift students can give themselves while they wait for a decision is financial education. MSU Denver is providing workshops and Q&A sessions for students looking to better understand their student loans.
"The information is at your fingertips," Eglaus said. "Make the decisions that count. Start saving. Prepare. Contact your lenders. Contact your financial aid office. We're here to help."
The federal student loan repayment pause has been extended while the government waits for the Supreme Court's decision.
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