WKU Director of Student Financial Assistance Advises Caution with Student Loans
BOWLING GREEN, Ky. – The alarming trend of student loans continues to persist, leaving many graduates in debt for years after their graduation. Amid these concerns, Bryson Davis, the Director of Student Financial Assistance at Western Kentucky University (WKU), advises students to exercise caution while applying for student loans.
The Biden Administration’s Recent Move
In response to the burgeoning student debt crisis, the Biden Administration recently announced the cancellation of approximately $1.2 billion of debt for borrowers. To be eligible for this debt cancellation, borrowers must be enrolled in the SAVE plan, have been in repayment for at least ten years, and have taken out $12,000 or less in loans for college.
However, Davis emphasizes the importance of understanding the specific requirements of this plan. He cautions that students who don’t meet these requisites cannot just request forgivable loans.
“Federal student aid things, right now, are changing almost daily. We avoid setting the expectation that any loan borrowed would potentially be forgiven, simply because those rules change frequently – from administration to administration, from day to day” Davis said. “We want the students to understand that if they borrow a loan, they are agreeing to repay it.”
Assisting Students in Financial Planning
To assist students in making informed decisions regarding their loans, WKU meets with every incoming freshman to discuss their four-year plan, which includes their financial commitments. This initiative serves to educate students about the implications of borrowing and prepares them for the potential challenges they might face during repayment.
Warning Against Scams
Davis also warned students about potential scams they may encounter, such as ‘dot Gov’ emails and processing fee demands. He emphasized that the Department of Education would never ask a student to pay for these things. “If they’re being asked to pay some type of fee for loan forgiveness, that’s a good indication that whoever is contacting them is not associated with the Department of Education.”
He encouraged students who are unsure or concerned about their loans to first contact their loan servicer as they will have the most recent and accurate information regarding student loan policies and announcements.
An Ongoing Issue
Student loans have become a significant issue in recent years, with an increasing number of students unable to pay back their loans after finishing their education. This issue is not unique to any particular region but is a grave concern across the country. This situation prompts the necessity for discussions about the need for financial literacy and assistance for students in understanding their financial commitments when taking out student loans.
Initiatives like those taken by WKU, coupled with the new policies by the Biden administration, are steps in the right direction for alleviating the burden of student debt, a sentiment echoed by many financial aid advisers across the country.
