How Wilmington-area residents will benefit from the Biden student loan forgiveness plan

For thousands of North Carolinians, paying for college just got a little bit easier. 

President Joe Biden announced last week he will forgive up to $20,000 in student loans for millions of Americans. He also will extend the payment freeze again so borrowers do not have to begin making payments on their loans until the end of the year. 

Borrowers who have loans through the Department of Education and make less than $125,000 a year will qualify for forgiveness of $10,000. Those who received Pell Grants are eligible for up to $20,000 in forgiveness. 

In North Carolina, an estimated 363,000 people will qualify for loan forgiveness, according to Student Loan Hero. That’s nearly one in three borrowers living in North Carolina.

That includes forgiveness for many who attended Wilmington-area colleges and universities, making it easier to pay off loans while dealing with the aftermath of the pandemic, said Frederick Holding, director of UNCW’s Office of Scholarship and Financial Aid. 

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Holding said the forgiveness will also likely reduce monthly payments, making it more manageable for recent graduates who are working to pay off debt. 

Similarly, Cape Fear Community College President Jim Morton said the school is hopeful the debt relief plan will benefit both students and employees at the college.  

Morton said CFCC prides itself in keeping tuition low so education is more attainable and students do not “accrue overwhelming debt.” He said the announcement from the White House will further assist CFCC’s graduates. 

“We believe that education is a wonderful investment, and we are delighted to provide students with an affordable way to achieve their academic goals,” Morton said in an emailed statement. 

Brunswick Community College declined to comment. 

Biden still faced backlash over the decision from his Republican colleagues at a federal and local level. The plan was announced last Wednesday.   

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"I understand not everything I'm announcing is going to make everybody happy," Biden said during a speech at the White House. "Some think it's too much. I find it interesting how some of my Republican friends who voted for those tax cuts think we shouldn't be helping these folks. Some think it's too little, but I believe my plan is responsible and fair. 

In the coming weeks, the Department of Education will share further information on how people can apply for relief. Millions across the country will automatically qualify because of already existing income data. 

Contact reporter Sydney Hoover at shoover@gannett.com or on Twitter @sydneymhoover. Join the Education Issues in Southeastern North Carolina Facebook group to stay up-to-date on education news.