HARRISBURG, Pa. — As President Biden’s student loan forgiveness initiative hangs in the balance of power of the Supreme Court, Pennsylvanians anxiously await a decision. FOX43 took to the streets to hear just how much Pennsylvanians owe and how much they care about the case.
FOX43 spoke to five people in Harrisburg with occupations ranging from paralegals, single moms and current students. Each individual owed more than $10,000 in federal student loans and said that they either made payments but interest kept their balance up, or they allocated the money to bills and other expenses.
“Many of us are stuck in service jobs, low-paying jobs now that we have this debt settled on us now and I don’t think it’s a fair situation for many people in my generation,” said Austin Martin, a graduate student worker.
“Minimum wage compared to inflation and how much we make, there’s just no way… my rent is going to come first before a student loan payment,” said Erin McCandless, employed at the York County Courthouse.
Mary-Jo Terry, managing partner at Yrefy, said Pennsylvanians should be ready to make payments and have a plan because regardless of what the Supreme Court decides, payments will resume.
“We want to keep your loans in good standing; if the forgiveness is going to transpire, your loans have to be in good standing and we want to keep you in that situation, and the great news is education has really been at the forefront,” said Terry. "They’re looking at implementing some additional income-driven repayment program."
Terry said the income-driven payment plan would allow borrowers to pay what they can afford. Another option is to go into deferment or forbearance on the loan account. Both options would postpone payments and allot time for borrowers to look into payment plans.
“It’s a good time to just take five or 10 minutes to really see where you’re sitting to see if you can afford to make your monthly payment,” said Terry. “Once the decision is made by the high court, 60 days later your loans are going to go into repayment… payments are going to be made."
A decision by the Supreme Court is not expected to be made until the end of June. According to the Associated Press, there is a slim possibility President Biden’s student loan initiative will go through.