‘A Punch To The Gut:’ What SCOTUS’ Student Loan Decision Means To D.C.-Area Borrowers - DCist
When Cesar Toledo learned that most of his student loan debt might be forgiven last year, he “felt like a weight lifted from my shoulders.”
Toledo had $25,000 in student loan debts. Under President Biden’s student loan forgiveness program, he would have had $20,000 of those debts forgiven. He and his partner began talking about buying a home and adopting children.
But those plans were upended when the Supreme Court struck down the program in late June. Now, he and millions of other borrowers will need to start repaying those loans in October, and student loan interest will resume Sept. 1.
“It feels like a punch to the gut,” Toledo told DCist/WAMU. “My partner and I now have to push back some major life decisions because of this crippling debt that we both are strapped to.”
Toledo, who is in his early 30s, is uncertain of how exactly to move forward. He estimates that it would take about 10 years to pay off his debt if he stays in the region.
Cesar Toledo and his partner started planning to buy a home and adopt children after Biden announced his student loan forgiveness program last year.Cesar Toledo
Toledo is especially attuned to education policy issues; he is the Deputy Director of Democrats for Education Reform D.C. His organization wants to see local government step up and expand programs to help lower student debt, and they hope the D.C. Council and mayor will take action.
The D.C. area has some of the highest student debt burdens in the country. Many residents are recent college graduates, and borrowers are further hampered by the area’s steep cost of living.
For some residents, Biden’s student loan forgiveness program left them more or less debt free. The program canceled up to $20,000 of federal student loans.
Many, like Toledo, were suddenly in the position to consider homeownership sooner. One resident told DCist/WAMU last year that he bought his first car because of the news.
