A Maryland woman says she paid off her daughter’s student loans just days before Biden’s debt relief plan was announced.
On Aug. 24, Biden announced a national plan that would wipe out $10,000 of total student loan debt for most residents.
Young told the Post that she has no regrets about paying off the loans before receiving the one-time debt relief.
She said she had already taken advantage of the interest-free payment breaks during the pandemic to repay the loans. Payment breaks, which were introduced as emergency aid for residents in financial difficulty during the pandemic, have enabled some borrowers to pay off their debt.
“The only good thing that came out of COVID was that they suspended interest payments,” Young told the Post. “Well, that gave me time to pay the money back.”
Between April 2020 and June 2022, nine million borrowers made student loan repayments while interest was suspended, a Department of Education spokesperson told The Washington Post.
Today, some are trying to recover part of their debt in order to have it cancelled. A loophole allows those who have recently paid off their student loans to request a refund and then apply for loan forgiveness, according to The Post, but Young said she won’t.
“My daughter used the money to get her education. She got a degree. I don’t even think I should go through the process of trying to take advantage of the relief they are giving people now,” he said. she declared.
“I could repay the money, and it was a blessing to have been able to. I was in the financial position to be able to repay it.”