President-Elect Joe Biden has expressed his support for Congressional Legislation in canceling $10,000 of student loan debt per borrower.
On January 8th, Biden’s transition team reaffirmed his support for $10,000 in student loan forgiveness for each student loan borrower as part of additional coronavirus relief – but only through Congressional action.
According to NerdWallet – more than 45 million Americans hold Federal Student Loans – about 13 percent of the U.S. population. With the decision to go through Congress rather than executive action, that means this decision is up for debate.
Perryman Group Economist and CEO Dr. Ray Perryman says this decision presents pros and cons.
“It’s a difficult one, but I think something along those lines – whether its $10,000 across the board or something else – I think some level of student loan relief is something that can probably pass over the next few years,” Perryman said.
Baylor University senior Kerry Burkley says Biden’s commitment of relieving student loan debt is beneficial to college students future after graduation.
“I definitely think this is something. As he starts to take office within his presidency, we are going to see if this is going to be a great mark for our economy or not. I personally believe and think that it is,” Burkley said.
As of now, President Biden says he will extend the pause on Federal Student Loans – which is the first commitment made by the incoming administration to tackle the $1.6 trillion crisis.
Perry believes that when a bill is made to fit many situations, it is not going to be perfect – but it’s a start to a positive impact on the economy.
“I think it’s a good thing. It’s like a lot of other things. In a perfect world we can try to make economic policy with a scalpel, but we have to use a machete.”