(ORIGINALLY AIRED NOVEMBER 15TH, 2022)
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STATION: KRCR NEWS CHANNEL 7
EDITOR: ANWAR STETSON
PRODUCER: ANWAR STETSON
WRITER: ANWAR STETSON
CAMERA: ANWAR STETSON
TALENT: ANWAR STETSON
Chico, Calif.--- - During his presidential run, Joe Biden campaigned on forgiving billions of dollars of federal student loans. That promise seemingly came to fruition when the White House announced a plan to forgive up to $20,000 for many borrowers back in August.
Those plans have come to a halt, for now.
“The Missouri Court, which is the eighth circuit court of appeals, decided that it is unconstitutional for the Biden administration to issue the loan forgiveness,” said Jaycob Arbogast, a Finance Lecturer and Finance Center director at Chico State. “Their argument is that they will lose on state tax revenue by this plan going through.”
The Missouri Higher Education Loan Authority or MOHELA, services nearly $170 billion of student loans in the Show Me State, according to its financial statements.
The Missouri state treasury then receives money from the organization.
Missouri is one of six republican led states suing the Biden Administration on grounds that forgiveness will hurt state economies and loan service organizations like MOHELA.
Fortunately for many Chico state students, debt is not nearly as much of an issue as it is at other institutions. The average Chico State graduate leaves school with under $6,000 of debt, the lowest in California.
But for those struggling, Arbogast said, there are still options to help pay off loans or have them forgiven.
“If you are in maybe that $10,000 range, andif you’ve made any payments during the last year, you can apply for a refund of those payments,” he finished.
He urged folks to go to student aid.gov which is the federal website for managing student loans.
Public service occupations like the military, or nursing also have loan forgiveness plans.
As for Biden’s plan the case could possibly be taken to the Supreme Court, which could be a year’s long process. If the Supreme Court decides not to hear the case, Arbogast said, then the block will stand.
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