Reports have suggested Biden is considering $10,000 in student-loan relief for federal borrowers.
Cheryl told Insider that amount wouldn’t make a difference to her $303,000 student-debt load.
She said she has no problem paying back what she borrowed, but the interest just keeps growing.

If it weren’t for compounding interest, Cheryl — who requested her last name be withheld for privacy concerns — thinks President Joe Biden’s plans to forgive $10,000 in student debt for federal borrowers might have made a difference for her.

But with $303,000 in federal student debt — and an additional $20,000 in private student loans — the president’s plan just isn’t enough.

“It is not even a drop in the bucket,” Cheryl, 53, told Insider. “If you wanted to make a real difference, you could do away with half the interest we’ve accrued, but for now I’ll never be able to cover the payments.”

As a teacher in Massachusetts, Cheryl had to take out student loans for her bachelor’s degree in English and her master’s degree in education. While she said she has no problem paying back the debt she borrowed, the problem is the interest that accrued while she was in school and her loans were in forbearance. That’s making it nearly impossible for her to touch her principal balance at her current income level.

Biden has not confirmed an amount for any student-loan forgiveness he might implement, but recent reports have suggested he is looking at $10,000 in relief for federal borrowers making under $150,000 a year. While that’s an amount he pledged to fulfill on the campaign trail, many Democratic lawmakers and advocates had hoped he would go bigger and are disappointed he appears to be settling on an amount that would hardly make a dent in the US’s $1.7 trillion student-debt load.

“At the end of the day, we have to recognize that $10,000 is not enough,” Wisdom Cole, the national director of the NAACP Youth & College Division, previously told Insider. “$20,000 is not enough. $30,000 is not enough. We have to cancel a minimum of $50,000 or more. Isn’t the goal to get the most amount of relief to the most borrowers?”

‘I’m totally screwed’ when student-loan payments restart

The Biden administration has emphasized that before student-loan payments are set to resume after August 31, it will make an announcement on broad relief. But if it’s $10,000 in forgiveness, Cheryl said she …read more

Source:: Business Insider

      

Meet a teacher with $303,000 in student debt who says Biden’s $10,000 loan-forgiveness plan ‘is not even a drop in the bucket’

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