New Mexico student loan borrowers say they're happy for any relief
Aug. 25—When Celina Saiz arrived from California to attend the University of New Mexico, she paid out-of-state tuition for a few semesters, which meant a higher loan repayment.
She then had to take out a private loan to afford to live in Lobo Village on the university campus. After graduation, she went to law school in Florida, which required more financial aid. Altogether, her schooling resulted in $170,000 in debt.
Saiz, 27, tried to consolidate her debt, but because she had a mix of federal and private loans, she was unable to. She wants to raise a family but doesn't believe that's an option.
"Everyone tells me, 'You can do it. You can do it,' " she said. "But for me, personally, I wouldn't be able to feel comfortable doing that with as much money as I owe and how much I'm getting paid."
President Joe Biden's announcement Wednesday his administration will bring $10,000 in debt cancellation for millions of students and another $10,000 in relief for those with the greatest need will be a tremendous help, Saiz said, if only to trim some of her debt.
"It's going to be a huge help," she said. "It's not a lot, it's only $10,000, but then again that's still $10,000 of debt that will go away. Any help I can get would be great because debt really hits you hard."
Biden also extended the pause on student loan payments until the end of the year and promised to expand current debt forgiveness programs.
There are 228,000 student loan borrowers in New Mexico with a total of $7.8 billion in debt, according to the New Mexico Higher Education Department. The average borrower in New Mexico is about $34,000 in debt.
Gov. Michelle Lujan Grisham said in a statement Wednesday the Biden administration's plan would be a relief for those who were not able to reap the benefits of New Mexico's college aid programs. The governor praised the state's strides in making higher education more accessible.
Brittney Stocking, who is a part of the Albuquerque Teacher Residency Partnership, said she considers herself lucky; the federal debt cancellation for her could mean the opportunity to put a down payment on a house. Stocking has $25,000 worth of debt from her undergraduate program and expects her master's program will add $15,000 to the total.
"For my undergrad, [debt cancellation] takes off about half of it," Stocking said.
The picture looks more complicated for current college students. Students at Santa Fe Community College — some of whom haven't yet had to take on debt, thanks to state scholarship programs — said they are happy to see strides in student loan debt cancellation but are still worried about future debt they might incur to complete degree programs. They fear the federal debt reduction might not be enough to keep them afloat.
Thania Juarez chose to attend the local community college to avoid high tuition costs right out of high school. It's her first year, and she is already worried about taking on debt when she eventually moves on to New Mexico State University.
"I didn't want to put myself and my parents in a situation where they had to pay so much money," Juarez said. "It definitely worries me because I feel like I'm too young to be in so much debt and have to pay it back all on my own."
Caylah Brewer, a recipient of New Mexico's Opportunity Scholarship, which covers up to 100 percent of tuition and fees at a state university or college, said the prospect of taking out future loans is daunting.
"It's a drop in the bucket," Brewer said of the federal debt cancellation announced Wednesday. "It's a good effort, but a lot more could be going toward education. Putting money into social programs is the best thing for our communities, and education is probably the best thing for community development."
Stocking, 26, said she hopes more people will get onboard with the idea of student debt forgiveness so future generations don't have to suffer heavy burdens.
"The idea of debt holds people back from pursuing an education because the idea of being in debt terrifies them," she said. "I would hope that this would encourage more people to go to college."
