While the federal government begins searching for new ways to forgive student loans, one PNW administrator says students should consider other financial aid options.

“A lot of students don’t take advantage of scholarships, not that they don’t want to take advantage of them, but a lot of students aren’t aware of them,” said Elizabeth Depew, vice chancellor for Enrollment Management and Student Affairs. “Universities have donor-funded scholarships and there are community groups that have scholarships too.”

Student loan forgiveness is back in the news because President Joe Biden’s administration is resurrecting efforts to forgive student loan debt.

In June, the Supreme Court struck down Biden’s original plan to forgive some, or all, federal student loan debt for 40 million borrowers. By a 6-to-3 vote on ideological lines, the high court ruled that federal law does not authorize the Department of Education to cancel such student loan debt. The original plan would have eliminated all student loan debt for 20 million borrowers.

After the court’s decision, Biden said he would seek other ways to forgive the loans. At the beginning of October, as student loan repayments restarted following a COVID-19-related pause, Biden forgave $9 billion in student debt, affecting 125,000 people.

A week ago, the administration began efforts to identify new ways to help as many borrowers as possible, but it’s unclear whether it will be as expansive as a proposal he made in 2022. That plan would have canceled up to $20,000 in federal student loans for borrowers with incomes below $125,000 or couples below $250,000.

The Supreme Court’s decision disappointed some students.

“We knew it was eventually going to happen,” Kaylee O’Connor, a junior Accounting major. “I do think that they could have waited a bit longer … because a lot of people, including myself, are still feeling the effects of COVID. A lot of people still do not have a stable job and income, even though it is over three years later.”

Brandon Cerna, a junior Computer Information Technology major, said he was disappointed at the promise of loan forgiveness being snatched away.

“I think it is wrong because sometimes it is impossible for some people to be able to pay off their loans,” he said. “It has been promised for so long.”

Student loan debt poses a significant problem for the nation. In all, 45 million people have amassed about $1.6 trillion in student loan debt. About 53% of borrowers – 23.9 million people – owe $20,000 or less. About a third of borrowers are over 40 years of age; 44% were 26 to 39.

About 50% of PNW students have taken out student loans.

Tanika House, assistant director of Financial Aid, said it typically takes a borrower 25 years to pay off their student loan debt.

“It may take one person that long or longer with interest added to pay that loan off,” she said.

If a student absolutely needs to take a loan to pay for school costs, Depew advises they be frugal.

“We are human, and we tend to not only take what we need,” she said. “Don’t take what you don’t need. … If you’re at an institution where … you don’t need much money, I would say don’t take it.”

House also urged caution since loan forgiveness remains a hope of the Biden Administration.

“Students that take out student loans: the responsibility falls on you [to repay them],” she said.

Katelyn Wiening also contributed to this story.