Student loan debt relief lifts some financial stress off families

NOW: Student loan debt relief lifts some financial stress off families

WISCONSIN (CBS 58) -- Families are reacting to the student loan debt relief after the Biden administration announced their plans, saying any amount of money can help take some of the burden off.

"Ten-thousand dollars is a lot of money, so it makes a big difference," said one dad as he was dropping off his daughter at Marquette University.

On Wednesday, President Biden announced borrowers who make less than $125,000 (or $250,000 jointly) are eligible for up to $20,000 in student loan forgiveness if they received Pell Grants, or up to $10,000 for those who did not receive Pell Grants.

A local loan expert said this relief is aimed to help those most in need.

"This is really geared to help the blue-collar, working individual, the student loan borrower making good to good income or lower than average income. This is really who it's aimed for," said Erik Kroll owner of Student Loans Over 50.

Some parents said this relief will especially help families who have several children in college.

"Now I have a freshman starting and then next year I have another one starting, so every little help," said Kameika Beckford.

The debt relief applies to current students who took out student loans before July 1 of 2022.

The loan payment pause was extended through the end of 2022.

"Students and parents have roughly three, four months here to start lining up their budgets and get ready for that," University of Wisconsin-Milwaukee Director of Financial Aid Tim Opgenorth said. "If students and parents have the ability to start making payments now, it would be to their advantage, because it's actually interest free."

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