By Rosemary Ford and Caitlin Agnew

The Supreme Court effectively ended President Biden's one time student loan forgiveness plan, an initiative that would have canceled up to $20,000 in federal student loans for over 30 million ballot borrowers. Here to talk about all things student loans and what recent rulings mean for borrowers in New Hampshire is Vice President of Student Financial Services at Franklin Pierce University, Kenneth Ferreira, along with a recent graduate of Franklin Pierce and reporter at the Dartmouth Week Magnolia McComish.

Melanie Plenda:

So Ken, let's begin with you. Can you tell us about your current role as a financial aid professional at Franklin Pierce, and where Student Financial Services play out in university systems?

Kenneth Ferreira:

Yeah, so at Franklin Pierce, I'm the Chief Financial Aid administrator so I oversee all of the university's institutional as well as federal and state Student Financial Assistance programs. We also are a one stop shop and so all things student finance live under Student Financial Services at Franklin Pierce. We play a critical role 100% of our undergraduate population at Ringe, full time undergraduate day students receive some sort of financial assistance. And obviously 100% of them are billed as well. And so we serve all of the student population, whether there are a day student, an evening online, grad, or a residential grad, or DPT, PA.

Melanie Plenda:

And Magnolia. You graduated from Franklin Pierce in December of 2022. Can you tell us a little bit about your college experience and what led you to Franklin Pierce as an out of state student? 

Magnolia McComish:

So I studied communications and political science at Franklin Pierce. And what really drew me to Franklin Pierce into New Hampshire was the political climate there. I really wanted to be in a purple state during an election season where a lot of candidates come. And I just knew at Franklin Pierce, I would have so many opportunities I wouldn't get at another larger or more expensive school even. 

Melanie Plenda;

And so let's start with the most recent news on student loans. President Biden's student loan forgiveness plan was just denied by the Supreme Court? Can you explain what the plan would have entailed for borrowers?

Kenneth Ferreira:

Yeah, so what the Biden Harris administration had introduced last summer actually was a plan for a one time student loan forgiveness or discharge of student debt. That would be $10,000. For students who did not have a Federal Pell Grant while they were in college, or $20,000. For students who did have a Federal Pell Grant while in college, those plans were put in motion and applications were being processed by the United States Department of Education. Data that came out from the White House includes that there were 121,000 New Hampshire student loan federal student loan borrowers, and that 77,000 applications for the one time loan forgiveness discharge were received just prior to when the department had to halt the application process as a result of lawsuits that were brought forward challenging the program.

Melanie Plenda:

So Magnolia you graduated from Franklin Pierce, as we said, back in December 22. When we weren't sure what would happen with Biden's student loan forgiveness plan, what was your reaction to the Supreme Court's ruling and how much of your loans were eligible to be forgiven?

Magnolia McComish:

So of course, my reaction is disappointed. I was qualified for $10,000 in forgiveness, which would have only left me with a couple more 1000 to pay off, which for me, and my position is very manageable. So it would have been a huge help. And looking at what that would have meant, in my term, like being uncertain when I was graduating, I graduated a semester early so I wouldn't have to take out more loans and have more debt. Had I known I would have received forgiveness for essentially, almost all of my loans, maybe I would have done another semester, that would have been a more realistic plan and had a more complete college experience.

Melanie Plenda:

And how will the rejection of this plan impact students in New Hampshire? What percent of students in the Granite State rely on loans?

Kenneth Ferriera:

Yeah, according to an article that came out this past fall, I believe it was through New Hampshire Business or New Hampshire Business Magazine. 70% of students who graduate from colleges in New Hampshire rely on federal student loans. And based on data from the project on student debt, that overall average indebtedness is just under $40,000. It's $39,950. And so, when I think about the 121,000 eligible New Hampshire borrowers and the 77,000, who submitted an application, I can only imagine how disappointed they are. The borrowers that I've heard from that I counsel on next steps are overwhelmingly disappointed by the decision that came out from the Supreme Court. 

But having said that, they are somewhat heartened by the plans that the Biden Harris administration has to use the Higher Education Act of 1965, for a new method to potentially assist as many borrowers as possible with some loan forgiveness. And those details are still being worked out, ironed out and communicated to financial aid officers. The good news, I think, in some of this is that they're talking about an on ramp. And so the on ramp in October gives another year where if there are missed payments, delinquent payments, that the student is not going to fall into a defaulted status. And so I think, you know, the students that I've spoken with, the borrowers that I've spoken with, are heartened by what is being planned in response, albeit disappointed in the current outcome.

Melanie Plenda: 

Okay, so Magnolia, in what ways would the forgiveness plan have altered your course of action and timeline for paying back your loans?

Magnolia McComish:

Well, just like Ken’s saying, having that money in my own possession and not going towards loans would have allowed me to make a down payment on a house much sooner. I could have if I need a new car, when emergencies come up. I have those savings to get those things sooner, rather than waiting to reap, accumulate that money and make it back while I'm now taking on additional expenses, like having a job that costs money in a lot of cases. So I'm making money now with my degree, but I'm also paying for that. So to have $10,000 not to say extra, but that was unexpected would have been a huge gift and a huge, almost advancement in my grown up life, if you will.

Melanie Plenda:

In your 25 plus years as a financial aid professional, how big of a factor is financial aid and loans in a student's choice of where to attend college?

Kenneth Ferriera:

Yeah, I would say in the last maybe 12 to 15 years, it is often the number one driver. So if you survey students and ask them, How important was the financial aid that you received, it's upwards of 95-98%. That coupled with the program of study that the university or college is offering is right up there earlier in my career, financial aid and, and cost were not as predominant but as, as as wages and income nationally, particularly for middle class families have either remained stagnant or or not kept pace with with inflation, or the cost of living. That cost and financial aid factor has become one of the driving factors in decision making when it comes to enrollment.

Melanie Plenda:

With the rejection of Biden's forgiveness plan, along with high tuition rates and levels of indebtedness in the Granite State. What does this mean for higher education in New Hampshire? And do you think universities will see a decline in enrollment?

Kenneth Ferriera:

So I think that colleges and universities in the Northeast in general are experiencing some, some challenges strictly based on the climate that higher ed exists in right now. You know, earlier we talked about my 25 year career in financial aid, and I just want to make a quick comment about how 18 of those years have been at Franklin Pierce University. And as I mentioned earlier, 100% of our students received some sort of financial assistance. So 100% of our Ringe full time day students receive some sort of financial assistance and to hear Magnolia and her share her experience in terms of the decision to enroll at Franklin Pierce and how cost and affordability and value. All were part of her decision making process. 

I'm really proud to work for an institution that has access and affordability at the forefront of its enrollment process with students. Do I think that colleges and universities in New England and New Hampshire will continue to be challenged in this hyper competitive enrollment marketplace? Absolutely. But I'm also very proud to work for an institution that has made a firm commitment to access and affordability and has a generous financial aid program. So that students like Magnolia, choose us and graduate from us and can realize their dreams, both personally and professionally.

Melanie Plenda:

Final question for both of you, what advice would you give prospective students starting the college decision process when it comes to financial aid and loans? What are important factors for them to consider? Magnolia, we'll start with you and wrap up with Ken.

Magnolia McComish:

So I think it's really important to first talk to your parents and find out how much they are really contributing. And once you know how much you're responsible for. And if you're already working, or you already have some sort of income while you're in high school, start saving that money open, open a savings account, get a financial advisor, don't wait plan for this, like how you would plan for retirement, you don't wait until you're 50 and you're retiring in 10 years, you got to you have to start as soon as you can putting money away and expect to pay off these loans. It feels far away. But then it's the blink of an eye, you're a college graduate with a job and piles of debt that you don't know what to do with and you don't know how you're going to tackle on starting salaries that seem like they're just getting less and less and expensive world that just seems like it's going up and up. So it's so important to know what you're going to be responsible for and plan for it, be realistic, and then find scholarships. It really does help so much. Every couple $100,000 you can get from your community from anywhere really, it's going to help and it's going to help you in such a long term. You don't realize it when you're applying to college. 

Kenneth Ferriera:

Magnolia gave some really good advice. What I would say is when it comes to student loans, and when it comes to a college education, the college education is an investment in you and in your future. And the value of a college education remains the gold standard in our society. So college graduates continue to earn more over their lifetimes than those who didn't pursue something after high school didn't pursue some type of post secondary education and student loans are part of that equation. 

My mom graduated from college when I was in the seventh grade. So she went back as a non-traditional student. My wife is the first in her family and the only in her family to have a college education. Both of us coming from lower middle class families needed student loans. It is very likely that our children will need student loans but those student loans are investments. To Magnolia’s point and I'm going to use my words, borrow wisely. There remain professions that still allow for student loan forgiveness. 

So for instance, I mentioned my wife, she's a teacher. A significant portion of her student loans were discharged as part of being a special education teacher. And so work with a financial aid counselor at the college or university that you're looking at to have those conversations about student loans, to have those conversations about what your dreams are as far as professionally and whether or not some type of student loan forgiveness that existed long before this program, through President Biden and Vice President Harris was launched and remain intact. And at the end of the day, I would never want for a young person to believe their dreams are out of reach because they're afraid of making that investment in themselves. There is always a path. I've been doing this a long time. The path may not be the path that you envision, but work with someone in a financial aid office and they'll help you figure out the path that's right for you.

Melanie Plenda:

Kenneth Ferreira, Vice President of Student Financial Services at Franklin Pierce University and Magnolia McComish, Franklin Pierce, alumna and reporter at the Dartmouth week. Thank you both so much for joining us today.

The State We’re in a weekly digital public affairs show is produced by NH PBS and The Marlin Fitzwater Center for Communications. It is shared with partners in the Granite State News Collaborative, of which both organizations are members.