Unlocking doors: Student Debt Relief Pilot opens pathway to homeownership

By Nailah Jones, communications associate

The “American Dream” passed down from generation to generation has always included the house with the white picket fence. But that dream remains a fantasy for most. And even with a college education that is supposed to be a pathway to a better life, adults like Samantha Pack struggle to reach this goal. One of the biggest reasons? Being bound by student loan debt. By the time Samantha graduated from the University of Georgia with a bachelor’s degree in international relations and affairs in 2016, she had a staggering $45,000 debt looming over her.

For Samantha, receiving assistance from family was not an option. And although she was grateful for her education, the stress of finances was always present, significantly impacting every facet of her college journey. While many students often use unpaid internships to enhance their experience and begin building their careers, Samantha found herself unable to pursue them. Juggling to balance work alongside studies, she risked being disqualified from scholarships and other financial aid if her income exceeded a certain threshold.

“It’s like a pervasive circle you can’t get out of,” Samantha said.

After graduating, Samantha’s original monthly loan payment was over $300, which she paid on a $7.25 hourly wage. After her salary eventually increased to $30,000, Samantha was able to restructure her loan payments to lower the monthly bill, but it was still a struggle to make ends meet with the rising cost of living in Atlanta. As a local nonprofit professional, Samantha said she wanted nothing more than to stay in the community she loves, doing the work she loves.

“I think the conversation is why student loan debt affects people who grew up in poverty at a rate so much higher than those who did not,” said Samantha. “And why does it tend to keep those people in the circle of poverty?”

Samantha’s sentiments echo those set forth in a 2023 Forbes article, which highlighted that rising living costs, slow wage growth and the burden of student loans hinder millennials from accumulating wealth and achieving long-term financial goals.  

One day, Samantha decided to take a chance that would change her trajectory for the better.

She discovered the Community Foundation for Greater Atlanta’s student loan debt pilot program. Created to address the burden of student loan debt in metro Atlanta, the pilot aimed to pay off up to $30,000 of student loan debt for 10 students in three neighborhoods where the Foundation focuses its work: South Cobb (Fair Oaks); South Fulton (College Park); and Atlanta (Thomasville).

In the application, Samantha articulated the profound impact of her debt on her daily life and future aspirations. “Maybe it wasn’t my most picture-perfect work, but it was true, and it was honest about the reality of living with student debt,” Samantha recounted.

When she learned she’d been approved for debt relief, Samantha says she cried tears of relief and disbelief. The program alleviated over $27,000 of her student loan burden, marking a pivotal moment in Samantha’s financial journey. With her debt-to-income ratio near zero, she embarked on a new chapter in her life that previously seemed inaccessible.

“It is a completely different feeling. You don’t have to be afraid to be happy anymore,” Samantha said. “There’s not another shoe to drop for the first time in your life. It’s a really hard thing to unlearn, but it’s been so joyful to unlearn that mindset.”

Samantha’s story underscores the broader societal challenges posed by student debt. Recent data shows that Georgians owe approximately $70 billion in student loan debt, impeding the financial ambitions of 1.7 million borrowers.

But thanks to the student loan debt relief pilot, this is no longer Samantha’s reality. She and her husband recently closed on their first home, a milestone made even more significant by Samantha’s past experiences with rental insecurity. Newfound financial stability also allows her to contribute to her father’s care, a responsibility she shares with her siblings. Above all, Samantha is looking forward to simply enjoying the things she had to sacrifice earlier on in her life, such as a honeymoon, and traveling.

Samantha emphasizes the silent battles of those troubled by student debt. “I am the person next door to you that is struggling. You would never know,” she said. Her words serve as a reminder of the staggering impact that student loan debt has on individuals and families across metro Atlanta and the nation. Through targeted relief programs and collective societal efforts, there lies a glimmer of hope for a future where homeownership and financial security are within reach for everyone.

**Through its Student Loan Debt Pilot, the Community Foundation for Greater Atlanta has erased nearly $300,000 in debt for 13 borrowers in the organization’s three neighborhoods of focus.

Photo credit: Samantha Pack