What Central Coast college students should know about Biden’s student loan forgiveness plan

SANTA MARIA, Calif. – Millions of federal student loan borrowers will soon see thousands of dollars of their debt wiped away thanks to a new plan announced by President Joe Biden in late August.

The application is not available to the public yet.  

That will soon change in the coming weeks.

Now 4-year universities are costly to attend.

Students like Kayla Fulton want to avoid student debt. 

She said the best way to save money is by starting at a community college for the first part of her education.

“I have work right now, so I am trying to save up for that,” said Fulton. “And I have the support of my parents thankfully. So I think with that combination, going to a university for two years is going to help a lot and save more money for both of us down the road.”

Alyssa Zepeda is also in the same boat. 

She says she wanted to attend school out of state. 

That changed when she found out she had to pay $16,000 out of her pocket for tuition alone. 

“I would've been in so much debt like insane,” said Zepeda. “So Hancock is helping me out. Everything is great.”

President Biden has a new student loan forgiveness beginning in the next few weeks. 

According to the Federal Student Aid Website, the U.S. Department of Education will provide up to $20,000 in debt relief to federal Pell grant recipients.

Up $10,000 in debt relief to others who received federal loans. 

Heads of households who make less than $250,000 annually will see up to $10,000 of their federal student loan debt forgiven.

“You can’t make more than $125,000 a year to be eligible for it,” said Hancock College president Kevin Walthers. 

“The community college president said most students start here at Hancock College to save money and transfer to a four-year university.”

The campus offers the first year of tuition-free to students. 

“We would like to see more investment in education,” said Walthers. “More investment like in our promise program. So we are doing our best to keep student debt low. “

The application will be available at the beginning of October.

Not every student loan borrower is eligible for debt relief. First, only federally owned student loans qualify. Private student loans are excluded.