Kendall County area residents react to Biden plan to cancel some federal student loan debt

Kendall County area residents carrying debt from college loans reacted favorably to President Joe Biden’s announcement Wednesday that he was canceling some of their federal student loan debt.

Under Biden’s plan, single individuals earning less than $125,000 annually can have up to $10,000 in federal student loans canceled and those who also received Pell grants can have an additional $10,000 canceled.

Biden’s plan affects millions of students across the country, including many in the lower Fox Valley area.

Jacob Holzer, 26, recently bought a house in Yorkville with his girlfriend. He currently has $37,000 in debt and said cutting that to $27,000 would certainly help him get closer to financial freedom.

Holzer grew up in Yorkville, attending St. Mary’s Plano Middle School and Aurora Central Catholic High School. He earned a bachelor’s degree from the University of Missouri and in May 2022 he earned a master’s degree in healthcare informatics from the University of Central Florida.

Holzer said he is glad he went to college, and found the experience helpful, but says time will tell if the return will be worth the investment.

“It doesn’t seem like a big deal when you’re going to school,” Holzer said. “But it’s definitely something you need to think hard about. Do the math, see if it’s worth it, and consider what kind of job you’re going to have once you graduate.”

Holzer said he was unaware, while an undergrad, the moment he took student loans out that they began accruing interest.

“Maybe that was my fault for not doing enough research,” Holzer said. “But I just thought you wouldn’t have to worry about interest adding up until you graduated. I think that is totally predatory.”

Holzer said the debt can add up and feel like it’s hanging over him, especially when making big purchases for his future like a house.

Holzer said he would advise students who are considering taking out loans just because their friends are going to college or their parents are pressuring them, to think hard about the investment and consider taking time off.

“There’s nothing wrong with taking a year or two off before you do it,” Holzer said. “I know a lot of people who’ve switched majors, didn’t graduate, or regretted spending money on their degrees.”

Sean Harreld, 27, works for the City of Aurora’s public works department and currently has $22,000 in student loan debt. He is hoping the forgiveness will help bring him out of debt quickly.

Harreld has lived in Aurora his entire life, attending Aurora Central Catholic High School before graduating from Aurora University in 2018.

Harreld has been looking to buy a house in the area for nearly a year, and said his debt has made getting funding in the form of a home loan more difficult and has limited the houses he could look at.

Harreld said looking back he would not have taken out the loans, and regrets not looking more closely at his options.

“I didn’t know how much I was going to owe. They make it too easy to take it out,” Harreld said. “Now I have a car payment, student loans, and soon a mortgage. It adds up.”

Harreld is hoping the forgiveness will cut his student loan debt down to $12,000 so he can pay it off quickly and only have to worry about his mortgage payments.

Zach Thomas, 26, has lived in Oswego his whole life and has never had student loan debt.

Thomas graduated from Aurora Central Catholic High School before entering into an apprenticeship to become an electrician. He is currently in his fourth year of apprenticeship, one year from becoming a wireman journeyman.

Thomas said though the canceling of student debt doesn’t benefit him directly, he is still in favor of student loan debt forgiveness as he believes the loans are unfair to students.

Thomas said university tuition, the interest rates on student loans, and the amount of debt you accrue before even graduating are all way too high.

Thomas said his girlfriend is currently paying off student loans and is hopeful that Biden’s plan to cancel at least some student debt will be helpful to her.