Florida students and grads react to federal loan relief program

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Relief. That’s how many college graduates say they felt when they learned they might qualify for the federal student loan relief program. “People like me who didn’t get a lot of scholarships to go to college, we had to take out those loans. But having something like that definitely helps for our future,” said Franklin Diaz, who attended Palm Beach. Atlantic University. Diaz said he is now a real estate investor and is paying off about $11,000 in student loans. dear,” Diaz said. It was definitely a heavy load…thinking, ‘I have a car that I need to finish paying for too.’ So I wanted to focus on that,” said Sophia Secrest, a senior at Palm Beach Atlantic University. She said she has about $21,000 to $22,000 left in student loans and plans to get her graduation in December. After completing her internship at an organization that works with refugees, the cross-cultural studies major said it inspired her to move to Atlanta and pursue a career there. “Maybe do some things type of social work, it doesn’t make a lot of money, so it would be helpful to have the pardon,” Secrest said. While many are relieved, some economic experts say this program could have unintended consequences. ‘impact is on the market, and I think that’s the message, ‘how will this policy affect the funding market or the college education funding market?’ “, said Amir Neto, director of the Regional Institute for Economic Research at Florida Gulf Coast University. “How are colleges going to react to this, are we going to see changes in tuition? “Experts predict that it will also have an impact on the private loan market.” Instead of taking private loans, they can try to get public loans instead of private loans. At this point, it makes this private loan market less profitable for businesses that participate in it,” Neto said. “As we decrease the loan supply, the loans available to students in this private market, we could an increase in interest rates in these markets. There may therefore be a ripple effect of this type of program on the private loan market. “For residents like Jeremy McQuinn, he said the program took a bit of a load off his shoulders. He said he had about $27,000 left in student debt from his bachelor’s degree in exercise science at Liberty University. McQuinn said he’s had various jobs unrelated to his degree and done an internship related to his studies in Maine I’m not really actively using it, so that debt is kind of where it’s been for a moment. I paid it off but there’s so much interest it’s kind of the same rate. McQuinn said. “It actually makes me want to pay maybe even more, it’s a bit of a boost so that if it drops enough I could probably knock it down in a lot less time. WPBF 25 News has reached out to local colleges and universities for their response. A spokesperson sent a statement from Chancellor Arthur Keizer of Keizer University below. “Keizer University understands that student loan debt is a significant issue and is sensitive to its impact on graduates. Today’s announcement will provide short-term benefits to students and their families who have struggled in the aftermath of the pandemic. However, it is difficult to understand its impact on the future of student loans, which offers many students a path to the American dream. We look forward to working with the Department of Education and lawmakers to develop the future of solutions that help low-income student borrowers and protect taxpayers.back Follow us on social media: Facebook | Twitter | Instagram

Relief. That’s how many college graduates say they felt when they learned they might qualify for the federal student loan relief program.

“People like me who didn’t get a lot of scholarships to go to college, we had to take out those loans. But having something like that definitely helps for our future,” said Franklin Diaz, who attended Palm Beach. Atlantic University.

Diaz said he is now a real estate investor and is paying off about $11,000 in student loans.

“I went there for the music and studied there for two years. And I got my degree somewhere else because it was a little too expensive,” Diaz said.

“It was a really heavy load…thinking ‘I have a car that I need to finish paying for too.’ So I wanted to focus on that,” said Sophia Secrest, a senior at Palm Beach Atlantic University.

She said she has about $21,000 to $22,000 left in student loans and plans to graduate in December.

After completing her internship at an organization that works with refugees, the cross-cultural studies major said it inspired her to move to Atlanta and pursue a career there.

“Maybe doing social work type things, it doesn’t make a lot of money, so it would be helpful to have the forgiveness,” Secrest said.

While many are relieved, some economic experts say this program could have unintended consequences.

“The impact is in the market, and I think that’s the message, ‘How will this policy affect the funding market or the college education funding market?'” Amir Neto said. , director of the Regional Economic Research Institute of the Florida Gulf Coast. University. “How are colleges going to react to this, are we going to see any changes in tuition?”

Experts predict this will also impact the private lending market.

“Instead of getting private loans, they can try to get public loans instead of private loans. At this point, it makes this private loan market less profitable for companies that participate in it,” Neto said. “As we decrease the supply of loans, the loans available to students in this private market, we could see an increase in interest rates in these markets. So there may be a ripple effect of this type of program in the private loan market.”

For residents like Jeremy McQuinn, he said the program takes the weight off his shoulders a bit.

He said he had about $27,000 left in student debt from his bachelor’s degree in exercise science at Liberty University.

McQuinn said he held various jobs unrelated to his degree and completed an internship related to his studies in Maine.

“Since then I haven’t really actively used it, so that debt is kind of where it’s been for a while. I paid it off but there’s so much interest it’s kind of like the same rate.” McQuinn said. “It actually makes me want to pay maybe even more for it, it’s a bit of a push that if it goes down enough I could probably knock it down in a lot less time.

WPBF 25 News reached out to local colleges and universities to get their response. A spokesperson sent a statement from Chancellor Arthur Keizer of Keizer University below.

“Keizer University understands that student loan debt is a significant issue and is sensitive to its impact on graduates. Today’s announcement will provide short-term benefits to students and their families who have struggled in the aftermath of the pandemic. However, it is difficult to understand its impact on the future of student loans which offers many students a path to the American dream. We look forward to working with the Department of Education and legislators to develop future solutions that will help low-income student borrowers and protect taxpayers.

WPBF 25 News has contacted the Florida Department of Education for a statement and has yet to receive a response.

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