When President Biden on Wednesday announced his plan for canceling some student debt – including up to $20,000 in debt cancellation for recipients of federal Pell grants, reserved for students with the greatest financial need – Meg Geoghegan thought of the many first-generation college students she works with.
Geoghegan is the board chair of Onward We Learn, a nonprofit that supports first-generation college students in Rhode Island. She says thousands of program alumni have incurred student loan debt, and nearly all are eligible for Pell grants.
“When we look at first-generation college students especially, the cards can be stacked against them,” said Geoghegan.
First-generation college graduates are more likely to have student loan debt, and tend to have higher amounts of debt, according to a 2021 study by the Pew Research Center.
“To be able to remove even just one more obstacle, I think, is tremendously important,” said Geoghegan. “The loan forgiveness will go a long way in helping them to make ends meet and earn that degree, which is ultimately a significant indicator for future earnings and prosperity.”
According to the Institute for College Access and Success, the average student debt in Rhode Island is $36,791, the fourth highest in the country and second-highest in New England. Thirty percent of undergraduates who attend schools in Rhode Island are Pell grant recipients.
Republicans are lining up against the plan, saying it could raise inflation and benefit the wealthy. In a statement on his website, Republican Senate Minority Leader Sen. Mitch McConnell called the plan “a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our Armed Forces in order to avoid taking on debt.”
Democrats are torn on the new plan – while some applaud the move, others want to see more. In a tweet, Democratic Congressman Ro Khanna of California said the plan is “not enough,” calling for “more relief and for free public college and vocational school” in the long-term.
Geoghegan said the plan is “a start, but there are other structural changes that really need to happen.”
“From the Onward We Learn perspective, we’re going to continue to advocate to make college more affordable at the outset,” she said. “Because even that is a barrier, the idea of incurring debt at all, or taking that step can be very intimidating.”
President Biden promised more details on the debt relief application process in the coming weeks.
