SCRANTON, LACKAWANNA COUNTY (WBRE/WYOU) – Barreling towards January 20th next year, the president-elect is rolling out personnel picks and outlining plans for the incoming administration.
Among those, the potential to forgive millions, if not trillions of dollars, in student debt.
More than 44 million Americans are living with student debt and for many it is crippling.
When you consider the year we’ve had and the economic strain on the nation, there’s plenty who could use a break.
Recommendations from the president-elect currently include $10,000 of immediate student loan forgiveness.
There are calls from democrats in congress to extend that to $50,000 but with the legal battles that would possibly ensue, the thought is on the lower end.
Talking with the chair of finance and economics for Scranton University, Iordanis Petsas says something like even the most basic student loan forgiveness could be a financial incentive that could help grow the economy down the road.
“That would actually make some people make decisions they make decisions to go to college, that would, you know, create the right skilled labor that we need for future growth and future developer development support certain sectors in the future.”
Of the more than 44 million facing student loan debt, Petsas notes that a majority are only in the red between 5 and 10 thousand dollars.
Applying that to students from state and community schools, as well as private historically black colleges and universities, has the potential to be a real kickstart for millions.
Now whether this would apply to anything more than federal loans is still up in the air.
There’s also the questions of would this be executive order or a first brainstorm for congress.
What we do know is the federal department of education has the power to affect some student loan forgiveness that has been exercised during this pandemic.
This would just be taking it to another level, wherever that change would come from.