Loan forgiveness could make a huge difference for some, but a GOP congresswoman calls the president’s decision a ‘slap in the face’ to those who have already paid off their loans …
For Lizzy and Ryan Fox, it has always been important to do what made sense, financially.
In 2017, with the cost of living rising, especially rent prices, there were few things the couple could do to be better stewards of their finances. Moving out of Southern California was one; avoiding their student loans was not.
So when Ryan Fox sent his wife President Joe Biden’s announcement Wednesday — an extension of the student loan repayment moratorium and the cancellation of up to $20,000 for some borrowers — the former Costa Mesa resident was elated. She felt freedom. She experienced peace. And she began to believe a future in California again might not be unattainable.
Lizzy Fox, now 28 years old and living in Florida, is a 2015 graduate of Vanguard University in Costa Mesa. A Pell Grant recipient, she graduated with about $30,000 in student loan debt and had about $17,500 left as of Wednesday. (Ryan Grant graduated from Biola University in 2016 with $14,000 in student loan debt.)
“It is an overwhelming feeling. I don’t think it’s sunk in yet the freedom that this is about to allow us financially,” Lizzy Fox said in a phone interview.
Between the pandemic and starting a new business, the pause in federal student loan payments over the past couple of years has been welcome, but the fear of them restarting loomed.
“We both come from lower-income families,” Lizzy Fox said of herself and her husband. “In order for me to have gotten a degree, I had to take the loans out. There was no other choice.”
The president said those who earn less than $125,000 per year (or $250,000 per year for a family) could be eligible for up to $10,000 in loan forgiveness. For those who received Pell Grants, which are given to students with the greatest financial need, the federal government could alleviate an additional $10,000.
Biden’s announcement was met with both celebration and consternation across Southern California — almost expected in today’s political climate.
U.S. Sen. Alex Padilla praised the president, saying “hardworking Americans won.”
“First-generation students and communities of color will now be able to better save for their future and build wealth.
