When Diana Lindloff graduated from the University of Nebraska at Omaha in 2009, she began the long journey of paying off her student loans.
Lindloff estimated his debt was around $20,000 at the time. Despite working several jobs, sometimes as many as three at the same time, Lindloff said she only managed to pay off 25% of the debt in 10 years.
“Certainly, I pay the minimum. But that’s all I can ditch,” she said.
When President Joe Biden announced plans Wednesday to forgive up to $10,000 in individual student loan debt, Lindloff expressed excitement.
“Just lowering it a bit gives me some hope that I’m going to pay for it before I retire,” she said.
Biden’s plan, which has been criticized by Republican officials in Nebraska and beyond, is almost certain to face legal challenges. But if his plan survives, he could deliver a boon to part of the nation ahead of the midterm elections this fall.
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More than 43 million people have federal student debt, with an average balance of $37,667, according to federal data. Almost a third of borrowers owe less than $10,000 and about half owe less than $20,000. The White House estimates Biden’s announcement would wipe out federal student debt for about 20 million people.
Under Biden’s plan, borrowers who earn less than $125,000 a year, or families earning less than $250,000, would be eligible for the $10,000 loan forgiveness. Pell Grant recipients would be eligible for loan forgiveness amounts of up to $20,000.
Current students would only be eligible for relief if their loans were taken out before July 1, 2022. Biden is also proposing to cap the amount borrowers must pay monthly on undergraduate loans at 5% of their income, up from 10 % previously.
The president is also extending a pause on federal student loan payments for what he called the “last time” through the end of 2022.
Alexandra Espinoza, a UN official, asked how the plan would be funded.
“While the idea of repayable student loans sounds good in a perfect world, who’s going to pay for it? Will this lead to higher taxes? What will this come out of? she says.
She added that there are many alternative avenues for students to avoid being burdened with student debt, including seeking scholarships and attending community college for their first two years.
“If everything in life is free, what will it do to the concept of hard work?” she says.
Susan Reay, an assistant professor at the UN’s Grace Abbott School of Social Work, welcomed the announcement. Noting that she has taught students who have worked multiple jobs to make ends meet, she said Biden’s plan will help make life easier for her students.
She also said the prospect of student debt relief is critical to workforce development, especially in careers such as social work and teaching.
Jake Drake, a student regent representing the University of Nebraska-Lincoln and student body president of the University of Nebraska Student Association, called Biden’s plan “an important and impactful first step for borrowers to across the country”.
“Students on our campus will already feel the impact of increased financial freedom knowing that payments are on hold and a significant portion of debt will not hinder their future,” Drake said in a statement. “Certainly there is still work to be done to make higher education more accessible and affordable, but I am delighted to see this issue being addressed at all levels of government.
Nebraska’s congressional delegation, made up of all Republicans, has denounced Biden’s debt cancellation plan, saying in statements, among other things, that it would worsen inflation and shift the burden onto taxpayers. Rep. Don Bacon called the plan “reverse robin-hood” while Sen. Deb Fischer called the policy “economically backward.”
“The president can turn it around any way he wants with Pell’s facade, but ultimately his debt cancellation program forces blue-collar workers to subsidize white-collar graduate students,” Senator Ben Sasse said. . “Instead of holding to account an underperforming higher education sector that is pushing so many young Americans into massive debt, the administration’s unilateral plan is baptizing a broken system.”
Jim Pillen, a regent at the University of Nebraska and the GOP nominee for governor, called Biden’s plan “Big Government Socialism.”
“This decision will hurt the people of Nebraska every day by increasing our debt, increasing inflation and causing colleges and universities to raise tuition fees,” he said.
This report contains material from The Associated Press.
Our best Omaha staff photos and videos from August 2022
Omaha Creighton Prep’s Dean Donaldson (15) watches his team line up in Bellevue West High School’s football game against Omaha Creighton Prep at Omaha Burke High School on Friday.
ANNA REED, THE HERald OF THE WORLD

Bellevue West head coach Mike Huffman talks to Isaiah McMorris (3) after scoring a penalty kick following a touchdown during Bellevue West High School’s football game against Omaha Creighton Prep at Omaha Burke High School Friday. Bellevue West won the game 28-21.
ANNA REED, THE HERald OF THE WORLD

Emmanuel Sekamana uses a machete to harvest corn in his garden near North 40th and Parker streets on Tuesday August 2, 2022.
EILEEN T. MESLAR/THE WORLD-HERALD

Nebraska’s Ernest Hausmann (16) during a Husker football preseason practice at Lincoln on Wednesday.
ANNA REED THE HERald OF THE WORLD

Nebraska’s Ochaun Mathis (32) during a Husker football preseason practice at Lincoln on Wednesday.
ANNA REED THE HERald OF THE WORLD
Nebraska’s Logan Smothers (8) passes the ball to Nebraska’s Omar Manning (5) during Husker football preseason practice at Lincoln on Wednesday.
ANNA REED THE HERald OF THE WORLD

A brand new variety of organically-engineered pink pineapple, called “Pinkglow” by Del Monte, is causing a stir in stores and produce stands.
CHRIS MACHIAN THE HERald OF THE WORLD

Two purple martins seek space on a tree branch Wednesday as thousands of birds land near 42nd and Farnam streets.
Photos by CHRIS MACHIAN, THE WORLD-HERALD

On Wednesday, volunteers devein cabbage while preparing to do Sarma in the gymnasium of Saints Peter and Paul. Sarma is a Croatian cabbage roll that the parish, located at Streets 36 and X, will sell during its 105th annual festival on Sunday, August 7. They started with around 250 lbs of cabbage and 150 lbs of meat and hope to make around 900 Sarma.
CHRIS MACHIAN, THE HERald OF THE WORLD

The flight of a bird is illuminated by the moon. The peak of Purple Swallow migration in this area is usually in late August.
CHRIS MACHIAN, THE HERald OF THE WORLD

Thousands of purple swallows and other birds fill the air near 42nd and Farnam streets. Violet swallows are returning in large numbers to downtown Omaha for the first time in several years.
CHRIS MACHIAN, THE HERald OF THE WORLD

Mary Mangiamelli moves a tray of meatballs she picked up to do Sarma in the Saints Peter and Paul gymnasium on Thursday.
CHRIS MACHIAN, THE HERald OF THE WORLD

Joann Pechacek piles up the cabbage leaves after they were deveined in the Saints Peter and Paul gymnasium on Wednesday.
CHRIS MACHIAN THE HERald OF THE WORLD

Volunteers roll Sarma into the Saints Peter and Paul gymnasium on Thursday.
CHRIS MACHIAN, THE HERald OF THE WORLD

City Sprouts Program and Distribution Coordinator Laura Simpson (left to right), Justine Niyonzima, Jackson Baez-Leonard and Ahok Apayo take a break from harvesting Swiss chard and kale at the Community Urban Farm City Sprouts as part of an internship program on Friday August 5, 2022.
EILEEN T. MESLAR/THE WORLD-HERALD

Suzana Nizigiyimana (left) and her daughters Suzana Ntirampeba (left to right), Justine Niyonzima and Marie Rose Byukusenge peel beans on their porch on Monday August 8, 2022.
EILEEN T. MESLAR/THE WORLD-HERALD

A brand new variety of organically-engineered pink pineapple, called “Pinkglow” by Del Monte, is causing a stir in stores and produce stands.
CHRIS MACHIAN THE HERald OF THE WORLD

FBI Director Christopher Wray speaks to reporters at the FBI Office in Omaha Wednesday, Aug. 10, 2022. Wray responded to threats made against law enforcement after officers raided Mar- a-Lago.
CHRIS MACHIAN, THE HERald OF THE WORLD

Addison Rist, 14, of Gretna, pours water on the ground to keep out dust and help animals beat the heat at the Sarpy County Fair on Wednesday, August 3.
ANNA REED, OMAHA WORLD HERALD

Denise Lewis, Director of Programs at Fontenelle Forest, introduces Orion, a live owl from the Forest Raptor Sanctuary, to represent Forest Station Primary School’s mascot, the owls. Orion’s presentation took place during an open house on Tuesday at the new OPS school in Bellevue.
Pictures of LILY SMITH, THE WORLD-HERALD

Suzana Ntirampeba (left) and Justine Niyonzima, peel beans on their porch on Monday August 8, 2022.
EILEEN T. MESLAR/THE WORLD-HERALD

Emmanuel Sekamana walks in his garden near North 40th and Parker streets on Monday, July 25, 2022.
EILEEN T. MESLAR/THE WORLD-HERALD

The sun sets behind the North Platte football team as they warm up before the start of the third quarter against Papillion-La Vista South at Papillion-La Vista South on Friday August 19, 2022.
CHRIS MACHIAN, THE HERald OF THE WORLD