SIU Alumni weigh in on Biden’s Student Loan Forgiveness Plan

Kamaria Harmon | Kmarmon@dailyegyptian com

Newly released White House figures show 26 million people either applied for student loan debt relief or had already provided sufficient information to the Department of Education to be deemed eligible for relief. Over 16 million of those borrowers’ applications were fully approved by the Department and sent to loan servicers.

President Joe Biden wants to provide debt relief to borrowers with incomes below $125,000 a year, or households with incomes below $250,000 a year - $10,000 in federal student loan forgiveness with an additional $10,000 will be forgiven to those who received federal Pell Grants. The plan is on hold while lawsuits challenging it are decided.

Three recent graduates of Southern Illinois University say that the new forgiveness plan is helpful but won’t really impact them like it will the younger generations.

Lauren Stoelzle, an office support specialist, said she received her bachelor’s in 2011 and went back to get her MFA in 2019. During her time enrolled at SIU, she has racked up over $100,000 in student loan debt.

While she was in school, Stoelzle was worried about the debt she would have when she graduated and wished it wasn’t a burden she would have to carry.

“I have had confidence in my purpose and goals. However, it would mean the world to be able to actively fight for a brighter future without the weight of debt due to choosing education,” Stoelzle said.

When she first heard about Biden’s student loan forgiveness program, Stoelzle was comforted. She felt the weight start to lift until she discovered the amount they were able to receive.

“I was relieved when hearing about it,” Stoelzle said. “But for those who have the amount that I do, it is only a penny towards the total and interest.”

After graduation, Stoelzle didn’t have the plan to manage her debt. She did what she needed to do in order to get a degree, a vehicle and a place to live on her own.

Stoelzle hopes in the future that total forgiveness will soon become an option for those with overwhelming amounts of debt. She said if total forgiveness ever happens, she would be able to get a house and a new vehicle. She said if she didn’t have to worry about the debt while in school, she would’ve been able to pick up another major.

Stoelzle was raised by her mother, who was a first-generation student and single parent. She is also an alumna at SIU and received her masters here. She said that being able to experience watching her mother go through college on her own made her hope that she would receive more help.

“I wish there was more help for single parents. Childcare only covers 8 a.m. to 3 p.m., and I hope that my children have more freedom. I am a single parent and have worked for nonprofits for over three years, but not for 10,” she said.

In the near future, with this forgiveness plan coming into action, Stoezle hopes to gain back her confidence and financial freedom.

The Assistant Director of Digital Services at WSIU, K. Ellen Stackhouse, earned two degrees at SIU and is currently pursuing a third. She received her bachelor’s in 2005, her master’s in 2011 and hopefully, her second master’s very soon.

With her almost three degrees, Stackhouse has over $120,000 in student debt to pay back

“From the beginning, I sought to find a position that qualified for the Public Student Loan Forgiveness program,” Stackhouse said. “I knew it would mean a lower salary for 10 years but it was worth it to eliminate my student loan debt.”

When Stackhouse received news of Biden’s forgiveness program, she was very happy. She knew it wouldn’t make a huge difference to her, but some help was better than none.

“I was happy to know that $20,000 of my $120,000 debt would be wiped away, but honestly it’s a drop in a very, very, very deep bucket,” she said. “While it is a manageable burden at present, I try not to worry about the debt because I am three years from meeting the terms of the Public Student Loan Forgiveness program. In theory, my debt should be eliminated by 2025, allowing me a fresh start at the age of 45.”

In the near future, she hopes the government will allow changes to the Income-Driven Repayment plan, which will cut monthly payments for student loans in half.

“The plan will allow folks like me to put those funds towards a mortgage or other savings goals. I’d like to see legislation aiming to control the amount of interest on these loans,” Stackhouse said. “The interest is keeping many repayors in a vicious cycle where they are paying monthly but can never put a dent on the principal of the loan.”

Stackhouse said future generations should have the option to take free community college courses in high school or even right after to be able to transfer the credits to all four-year universities.

While in school, Stackhouse was fortunate enough to receive scholarships, assistantships and a fellowship, but still acquired huge amounts in loans. If she didn’t have to worry about the loans, she would have pursued a career in corporate America to earn more and better support her family while saving for retirement.

Melanie Hammond, the Program Coordinator for the Business Intelligence and Technical Services at the SIU Foundation, agrees. She maxed out her student loans in order for her to earn her two master’s degrees.

“The loan forgiveness doesn’t really affect me at all. I’m in negative amortization,” Hammond said. “Which is where interest accumulates faster than any payment I can reasonably make and still pay my mortgage and feed my children.”

Hammond is also taking part in the same program Stackhouse is. She hopes it will grant her the total relief she needs for financial freedom.

“Unless the current administration was to forgive the total balance, it doesn’t positively impact my life at all. My only real hope is that I am taking part in the Public Student Loan Forgiveness program and in three more years, I hope to be free of the student loan debt burden,” Hammond said.

Biden’s forgiveness plan impacts everyone with student loans in higher education, positively and negatively. Many hope other courses of action are soon inherited into the government’s plan to manage student loan debt.

Guest contributor Kamaria Harmon can be reached at kharmon@dailyegyptian.com