San Jose State University students say President Joe Biden’s newly announced student loan forgiveness plan gives them a sigh of relief and hope for a better future. Marianne Favro reports.
The student loan forgiveness plan is being cheered by thousands of Bay Area college students.
For many San Jose State University students drowning in college debt, President Joe Biden's loan forgiveness plan is a life line.
"I think it will help me a lot," said SJSU student Darryl Watkins. "Every year I am in more debt and taking out more student loans."
Under the new plan, students like Sofia McKinney will see her $10,000 federal loan disappear.
"Definitely having that financial burden taken off is finally one thing to take my mind off."
At California State University, East Bay where more than 70% of students who apply for financial aid qualify for pell grants, the president's plan is a game changer.
"Our average loan indebtedness for undergrad students is $20,000 to $24,000," said Sonia Gethani with the Office of Financial Aid at CSU East Bay.
However, not everyone is on board with the plan.
Top republicans are blasting the plan as a slap in the face to working families who paid for their kids' education without loans. They also think it will fuel inflation.
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Watkins disagrees and said the program will help him pave the way for a more secure future.
"Hopefully I can go to grad school and not think about paying off $50,000 in student loans. It will give me financial freedom."
