Hawaii teachers among those to benefit from Biden’s student loan debt cancellation

President Joe Biden announced Wednesday his plan to cancel student debt for millions of Americans, and some Hawaii teachers stand to benefit greatly.

Borrowers will have $10,000 of their college debt forgiven if they earn less than $125,000 per individual or $250,000 per household. People with student debt who used Pell Grants to pay for college will have up to $20,000 of their debt canceled.

Ehren Meinecke, a social studies teacher at Aliamanu Middle School, is one of the more than 100,000 people in Hawaii who qualify. The move by Biden eliminates all of Meinecke’s remaining student loan debt.

“All of my student loans, which amount to less than $10,000, will be forgiven,” Meinecke said. “Therefore, I will have enough money to go towards other expenses that can help my family in a number of ways, including paying bills, expenses, and spending more time with them. I’ll also use the extra money for saving up for our big goal, which is owning a single-family home.”

Meinecke said he applied for Public Service Loan Forgiveness (PSLF) but didn’t qualify because he hasn’t yet met the minimum requirement of ten years of service.

“I was a substitute teacher before becoming a tenured teacher, and they did not count it as full-time employment. I couldn’t qualify even though I’ve been paying my loans back since 2012.”

After suffering the disappointment of not qualifying for PSLF, Meinecke felt “ecstatic and super relieved” that all his debt will now be forgiven because of the president’s new plan.

The Honolulu Star-Advertiser reported that more than 122,000 people in the islands owe $4.6 billion in federal student loan debt, with nearly 84,000 Hawaii borrowers holding debts of $10,000 or more, according to the latest figures from the U.S. Department of Education.

HSTA President Osa Tui, Jr. said, “This is a wonderful example of why elections matter. President Joe Biden promised college forgiveness during his campaign for president and has now given relief to tens of millions of people across the country. So many educators in Hawaii are drowning in debt, and this lifeline will help to ease the burden and anxiety that they live through daily just trying to make ends meet.”

The U.S. Department of Education recently overhauled its long-dysfunctional Public Service Loan Forgiveness Program by enacting a temporary waiver that allows all payments by student borrowers to count toward forgiveness, regardless of loan program or payment plan. It also waives restrictions on the type of repayment plan and the requirement that payments be made in full amounts and on time.

Certain criteria for forgiveness have to be met. Of the requirements, 120 payments (do not need to be consecutive) have to be made, and one must work for a qualifying employer, like the Hawaii State Department of Education. Loans have to be direct or consolidated into a Direct Consolidated Loan.