COLORADO SPRINGS, Colo. (KRDO) -- Current and former students can now apply for the Federal Student Loan Forgiveness program. The official federal website went live this week, and since then thousands of students have sent in their requests.
The loan allows single students who make less than $125,000 a year to take up to $10,000 off their student debt. Those students who were recipients of the Pell Grant can also apply to receive this aid, however, they may only be eligible for a $20,000 relief.
Two Colorado alumni who say the new aid could be a game changer for them, and future students.
"Students are people who are looking for careers to better society in the first place and I think one of the drawbacks of going to school is being afraid of the student debt," said Colorado State University alumni Sydney Steffens.
The student loan forgiveness program is designed for Americans struggling to pay off their education.
"What the Biden Administration did is for basically Pell Grant recipients so people who are usually at a lower income threshold you can have up to $20,000 of the student loan forgiven," said Executive Director for Data-Driven Economic Strategies, Tatiana Bailey."
Others, however, say this could just be a short-term solution for a continually growing problem.
Bailey says while this is immediate relief for some, it doesn't solve the issues future students will face.
"You are kind of giving universities a ticket to continue to increase prices because you are not addressing the underlying reason why higher education is so expensive," Bailey said.
Still, some former graduates say that money could go a long way to helping reach future goals.
"I'll be able to focus on other things in life such as buying a house or a new car. So, it will change a lot of things," added Steffens.
"I have a baby on the way so getting my student loans out of the way would allow me to be home with my baby which I would really want to do," said UCCS Ellaura Robinson.
Although the aid could help as many as 43 million middle to lower-income students, Bailey believes it will only be a continuing problem for our economy.
"You know if you add it all up across the united states student loans are now almost reaching two trillion that is greater than credit card debt and it's only number two to mortgage," added Bailey.
Single graduates who make less than $125,000 a year can apply to receive $10,000 in relief. Pell Grant recipients can file for $20,000 of help.