Trump’s order stated it would “return authority over education to the States and local communities,” and the President announced student aid would be shifted to the Small Business Association (SBA), an independent government agency. Closing DOE requires congressional approval. Even if it were to pass, many doubt the possibility of SBA overseeing student aid, especially in the face of staff cuts across federal agencies.

Still, the order has raised significant concern over the implications the order may have for students. However, according to Michelle Roads, the associate vice president of the University’s Office of Financial Aid & Scholarships, GVSU has not made any preemptive changes as a result of the federal order.

“We have not heard of anything that will change from the student or parent perspective, and no changes that we know of now to any financial aid amounts,” Rhodes said. 

Many students at GVSU heavily rely on Federal Student Aid to pay for their education. Sophomore Regina Lavalle is one student who relies on government aid. She explained that neither she nor her parents can pay the full cost of tuition, especially since her little brother is also starting college. Lavalle expressed worry and frustration over the current situation. 

“If there are huge changes I am not sure I will be able to continue my education,” Lavalle said. “I rely on loans and grants to pay my tuition and am not sure I will be able to pay without them. Even if the amount just lessens, that may affect me.”

Another sophomore, Sara Duffiney, also relies on federal loans to pay for her education. For her, any large changes to financial aid would mean taking out even more private loans. This has led Duffiney to feel uncertain over what her educational journey will look like over the next few years.

“I’m not really sure what I would do if I did not receive federal loans,” Duffiney said. “My only plan as of right now involves cutting out parts of my payment to Grand Valley in the next few semesters to reduce my overall bill. Some of these (cuts) include not getting a meal plan, living off campus and not purchasing a campus parking pass.”

Rhodes said students would be notified, should any updates to financial aid occur. She concluded the Office of Financial Aid & Scholarships is available to answer questions from students about FAFSA and Financial Aid. In the meantime, students can visit their webpage for clarity about FASFA. 

According to the White House Fact Sheet, the plan consists of three primary parts: forgiving up to $20,000 in federal student loans for those making less than $125,000 annually, revising the student loan system to make it more manageable for students and attempting to reduce future college costs.

The pause on federal student loan payments and interest was initially enacted to ease financial stress due to COVID-19 and has been continued through numerous extensions. The pause has now been extended until Dec. 31, 2022.

The amount of debt forgiven will depend on the type of financial aid borrowers have received. Those who have received a federal student loan will be eligible for up to $10,000 in forgiveness, and recipients of the Pell Grant will be eligible for up to $20,000.

Revisions to the system would involve a variety of factors such as income-driven repayment plans, loan forgiveness policies and a new approach to monthly interest payments on federal loans.

Data from the National Center for Education Statistics showed that 57% of GVSU undergraduate students received federal student loans and over 25% received Pell Grants during the 2019-20 school year, meaning that loan forgiveness will impact thousands of GVSU borrowers.

While some GVSU students are apprehensive about their loans accruing interest again, some are pleased with the Student Debt Relief Plan.

“Obviously I don’t want to start gaining interest or thinking about loan payments again, and whatever payments I make at this time are going to come out of my spending budget,” GVSU student Anna said. “I am really happy with the changes that are being made and am hoping this is the beginning for student loan reform.”

The President’s last-minute announcement came amid growing calls from congressional allies to cancel student debt and extend the pause on loan payments.

“Resuming student loan payments would force millions of borrowers to choose between paying their federal student loans or putting a roof over their heads, food on the table or paying for childcare and healthcare—while costs continue to rise and while yet another COVID-19 variant increases hospitalizations nationwide,” said in a July 28 congressional letter to the White House and Education Secretary Miguel Cardona.

The announcement of the continued pause came only a week before the previous expiration date of August 31. Some student loan providers had already sent communications regarding establishing a repayment plan.

“Loan servicers have been updating their students who are in repayment about the extension or lack of extension of the COVID relief plan,” GVSU’s Financial Aid Office said. “As such, students should know when and if they will need to pay their loans.”

For those who are still enrolled as a student – whether an undergraduate, graduate or professional – and are borrowing, their federal loans are automatically placed in deferment while in school. This extends six months after they stop attending.

These students will likely be more focused on minimizing their accruing interest. If they choose to do anything, they will likely make payments for the amount of their interest.

For those who have graduated, they will begin making full loan payments.

The Biden-Harris Administration has signaled that it will continue to work toward implementing these changes, with applications for debt forgiveness expected to be made available as soon as October.

The plan allows individuals to have their student loans forgiven if they make less than $125,000 per year for an individual and $250,000 for married couples. The forgiveness could provide $20,000 in debt relief for people who are Pell Grant recipients and $10,000 for other borrowers. 

The debt forgiveness program doesn’t mean people will automatically be getting checks for $10,000 or $20,000; forgiveness is awarded based on how much debt a student has collected.

For example, if a student qualifies for up to $20,000 forgiveness but has $8,000 in loans, only the amount they have accrued in debt will be paid off.

According to NPR, there are 43 million people who would have their student loan debt lessened and 20 million who could have their debt canceled altogether. The White House estimated that 90% of relief will go to people making less than $75,000 a year.

According to the Department of Education, 8 million individuals can have their loans forgiven automatically from information that the department has on hand. However, other borrowers will have to go through an application process before the student loan payment freeze ends on Dec. 31. 

The typical debt of a recent college graduate who has taken out loans is about $25,000 post-graduation, according to the Department of Education. The forgiveness plan could make a substantial impact on borrowers. 

Those in favor of loan forgiveness from the federal government have argued that by reducing student debt, borrowers will be able to participate in the economy after graduation. It encourages students to take their money and put it elsewhere, like putting a down payment on a house or a car. This will give borrowers more buying power and more independence upon graduation.

On the other hand, critics of the move have pointed out that it does not address the rising cost of higher education overall. There has also been backlash from those who have already paid off student loans without government assistance or who pursued alternatives to higher education to avoid accruing student debt.

The exponential growth in college-related costs for students only highlights the need for relief and nullifies assertions that loan repayment today is not equitable to the ability to repay in past generations.

This policy is the first large-scale attempt at federal student loan forgiveness in the United States. However, it is familiar to many other countries within Europe and its introduction is leaving many people tentatively hopeful about the impact it will have on taxes in the long run.

Loan forgiveness ultimately will not solve the larger issue- higher education in not accessible to people in the U.S. because it isn’t affordable. Cost will remain a barrier to those without the resources to pay tuition as it rises year after year.

Failure to address the root of this issue, beyond the weight of student loans, endangers any prospect of a more just, equitable America for our future generations.

With numerous other financial responsibilities throughout their time at college, many of the students who need to utilize federal student loans have done so while carefully considering what it could mean for their future.

GVSU student Lily Weber-Bailey, who has had to utilize loan funding, said she feels that the weight of her loans weighs heavily on her decisions as she charts a path toward finishing her degree.

“I think taking out loans has pressured me to get through my education as fast as possible,” Weber-Bailey said. “Especially since I changed my major after freshman year, I feel pressured to take as many credits as possible each semester to finish in four years and it has limited my ability to add a minor.”

Weber-Bailey said she also worries as to how the specter of her loans will play into her plans for the future.

“My current goal is to become a doctor,” Weber-Baker said. “To make that happen, I have to take out loans I will be paying off for a long, long time.”

Lauren DeHerder, another GVSU student and loan recipient, echoed similar concerns about her own financial strategy after college.

“Instead of putting my earnings into buying a house and other future necessities, I have to pay off school instead,” DeHerder said.

Weber-Baker and DeHerder are two of thousands of students at GVSU who have similarly had to rely on loans from the federal government in order to fund their education. 

Data from the U.S. Department of Education’s National Center for Education Statistics showed 57% of all GVSU undergraduates received aid from federal loans in the 2019-2020 school year. 

During this time, the average amount of aid each student received stood at $6,589.

However, for the majority of GVSU students balancing loans with other financial commitments, the calls for loan payment changes on Capitol Hill could alter their situation.

Prompted by a COVID-19 era moratorium on student loan payments, lawmakers in the nation’s capital have begun to reignite calls for student debt relief. 

While the current pause lasts through Sunday, May 1 of this year, the approaching deadline has prompted members of Congress to begin calling for an even longer one.

Last month, Senator Patty Murray, D-Washington, released a statement pressuring President Joe Biden’s administration to extend the current pause on student loan payments until 2023.

“It should be easy to enroll in a sensible repayment plan, no one should end up with a monthly payment they can’t afford and debt relief shouldn’t require making it through a gauntlet of paperwork,” Murray said in the statement. “This isn’t too much to ask—so until we fix our student loan system, the student loan payment pause must continue to provide borrowers much-needed relief.”

A number of Democrats have gone even farther, using recent momentum to call for a cancellation of student loan debt.

In a letter sent to the White House on March 31, 96 congressional Democrats urged President Biden to provide that relief.

“Borrowers choosing between paying for basic needs or their student loans often refer to their debt as a life sentence that will hamper their futures for decades,” the letter read. “As your administration works towards rebuilding a more equitable and just economy, it should use its administrative powers to address this crisis and permanently relieve the millions of borrowers struggling with this debt.”

For members of the GVSU community like Weber-Bailey and DeHerder, cancellation of student loan debt could promise a smoother course in their pursuit of graduation.

“Canceling student loans would put less pressure on me to take the time I need to finish my classes,” Weber-Bailey said. “It’d allow me to add a minor which I wish I would have done from the beginning, but now it feels like it’s too late.” 

Student loans are a weight that many students carry through both undergraduate and graduate school. Students have individual approaches to their loans, but Grand Valley State University offers advice and guidance to help students manage their financial situation. 

Some students, like Joshua Maynards, carry this weight independently. Maynards is an advertisement and public relations major at GVSU. While in college, Maynards said he puts any money he isn’t using for basics like food and housing towards paying off his loans. His goal is to pay them off within five years.

“I pay and keep track of payments on my own,” Maynards said. “I’m confident that in the future I’ll be able to pay them off.”

Other students do not feel as confident. Lindsay Marcil, a junior studying social work, plans to get her master’s degree through GVSU. Marcil said that student loans have already impacted her life and she worries about the debt that will come following her bachelor’s degree. 

“It’s difficult because I’m trying not to worry about it now, but at the same time I’m going for my master’s, so I’m going to have a lot of debt and that stresses me out,” Marcil said. “Student loans help me, but they also hurt my future because it is going to get harder and harder to pay them off sooner.”

Marcil said her mom helps manage her student loans by organizing her money into different accounts, which helps Marcil keep her daily expenses separate from her tuition and school spending. 

“I’m going to pay off anything I can now and not use loans when I don’t have to because I’ve heard debt after college is horrible and it can follow you until death,” Marcil said.

While organizing her money helps keep track of where and how it is being spent, Marcil said that sometimes she cannot afford to pay for rent or groceries on her own and has to use her designated student loan account to stay afloat. While some students, like Maynards, find loans easier to manage and stay hopeful that it won’t hinder their future success, many other students find Marcil’s experiences relatable.

“I hate how expensive universities are,” Marcil said. “Sometimes it feels impossible to (imagine living) a happy and successful life because I am constantly worried about money.” 

For those who are worried about money or looking for more information and support as they navigate student loans, GVSU has programs to help students feel secure and organized in their financial situations. MoneySmart Lakers is a program that runs through the financial aid office to help students become independently aware of their own financial situations. 

“You don’t have to take a class on budgeting and investing,” Ben Rhodes, the Associate Director of MoneySmart Lakers said. “MoneySmart Lakers is an independent, free program to help students become aware of these topics.” 

Rhodes said that the most common topic MoneySmart Lakers covers with students is “exit counseling.” Through exit counseling, students are taught methods on how to repay their student loans post-graduation. Another resource this program provides is budget counseling. Students can sit down one-on-one with one of the program counselors and create an excel sheet to come up with a weekly or monthly budgeting plan. MoneySmart Lakers hosts events throughout the school year, offering students general advice on budgeting and loan management. 

“The number one thing I tell students is to get in the habit of tracking expenses,” Rhodes said. “It’s a great step to becoming financially independent because you realize how much you spend on small (or unnecessary) things, like fast food, per month.” 

Students can find more information about MoneySmart Lakers, as well as future events they will put on, on the MoneySmart Lakers Facebook page.

Taking out and managing student loans can be scary and draining, but GVSU is here to support students on their journey to financial independence and success.