LEE COUNTY, Fla. — A month after the Supreme Court dismissed President Joe Biden's plan to forgive federal student loans for millions of Americans, the administration is urging another push – but will this one stick? The approach is tied to household size and income.
F. King Alexander is a Professor of Educational Leadership at Florida Gulf Coast University.
"The college costs have gone up because people stopped supporting their public institutions in most states. Tuition, as a consequence, went up and as a consequence to students, they had to take more debt out so they could go to college," Alexander said.
Cindy Tran, an FGCU student says the new policy is a big relief before repayment starts in October. She lives at home with her parents to cut the costs of education as she's studying to become a veterinarian.
“I think, it would definitely be great, it’s definitely a big help, especially as a college student who has different expenses," Tran said.
Under the new plan, borrowers could pay significantly, less. For example, a family of 4 with a total household income of roughly $60,000 dollars, would not have any payments.
Alexander says he does not believe this policy will play a role in inflation and will rather serve as a way for the next generation to spend more money in the economy.
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