MORGANTOWN, W.Va. – Last week, President Joe Biden announced his student loan forgiveness plan.
Across the country, Biden’s plan is geared to generate relief to millions of Americans. His plan is set to pause student loans through Dec. 31, 2022.
The plan is designed to be in effect for American’s making less than $125,000 per year. For those that received the Pell Grant in college, they will see $20,000 in relief. For those that didn’t receive the grant, they will still be eligible for $10,000.
Also, you can cap repayment at 5% of your monthly loan recap if you have undergraduate loans.
Director of Institute for Policy Research and Public Affairs, Sam Workman, for WVU Rockefeller School of Policy and Politics has been researching the matter and has came up with some conclusions about the impact of it on the economy.
“Well, to the degree it impacts he economy, we won’t know that for awhile,” Workman said. “Most of this forgiveness will go into consumer good type of things. So, these folks are going to purchase things in the economy with this money.”
With the midterms rolling around, Workman doesn’t see the plan to affect them. Workman also doesn’t foresee this happening again since its a President’s policy.
“For this to continue in the future, another President would have to do this and I don’t see that happening,” Workman said. “This is the realization that those generations really struggling with increasing costs at college, mostly due to state funds dwindling down.”