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Student loan forgiveness helping local families

Millions of Americans will save on their student loans
Student Loan Forgiveness Explainer
Posted at 4:38 PM, Aug 24, 2022
and last updated 2022-08-24 20:17:26-04

President Joe Biden's announcement regarding student loan forgiveness will impact millions of Americans.

But for one Coastal Bend man, this will mean close to a thousand dollars a month in savings between he and his wife.

Villalobos and his wife are currently paying on student loans and with one child about to graduate college, and one set to enroll in a few years, the savings are welcomed.

"It can be a pretty big burden on the family depending on how much you're having to pay," he said.

It all depends on which payment plan you're signed up for.

Villalobos, whose wife works for a non-profit, recently found out all of her student loans will be forgiven.

"She got the documentation from her lender," he added.

Although the president's announcement will help those like Villalobos now, it's relief folks can't plan for in the future.

"I have another daughter who is a junior in high school and now I have to start thinking about getting for her," he said. "I don't want her to be dependent like we were on student loans because it puts them in the same bind."

Under the Presidents plan, up to $10,000 of student debt will be forgiven for individuals who did not receive the pell grant.

For those who did get the grant, they're looking at up to $20,000 in forgiveness.

The plan from the president will also extend the moratorium on monthly payments and interest for a "final time" through Dec. 31.