There are a few key points you might consider making to your High School students as they plan for college and are hearing about the President’s student loan forgiveness program.
- This doesn’t apply to most private student loans (Parent Plus Loans do qualify).
- This only applies to existing loans. Any loans they would take out for college beginning next year would not fall under this program. Current college students qualify if their loans were issued before July 1.
- There is no guarantee or expectation that this program will be extended to future loans so don’t take on any debt you cannot afford just because current students are having from $10,000 to $20,000 (with Pell Grants) of student loan debt wiped clean.
In many cases loans are a necessary evil that allow students to pursue their college dreams, but make sure your students understand they will have to pay them back and the ramifications of what that means for their futures. This program is probably a 1x thing and they can’t expect they will be beneficiaries of this happening again in the future.