NewsNationalNewsy

Actions

Study: Student Loan Forgiveness Benefits Economy

President Biden has said he prefers to work with Congress to cancel student loan debt instead of taking executive action.
Posted at 1:35 PM, Apr 07, 2021
and last updated 2021-04-07 15:35:00-04

The big question for a lot of people is: will President Biden cancel student loan debt?

That's up in the air right now.

A new analysis shows that if the president does forgive even $10,000 dollars per person, 34% of borrowers could have all of their direct federal student loans erased and 20% would have their balances cut by at least half. But the benefit would go beyond just the borrowers.

Andrew Pentis with Student Loan Hero says, "Basically, when you forgive student debt for a large amount of Americans you're helping to stimulate their personal finances and in turn stimulating you know at least local economies and hopefully nationally, as well." 

President Biden has said he prefers to work with Congress to cancel student loan debt instead of taking executive action. 


Trending stories at Newsy.com