FORT MYERS, Fla. — The Senate and the House passed bills to block President Biden's student loan forgiveness program.
The Congressional Budget Office says this forgiveness would cost the government $400 billion. Some believe it’s an investment, that would strengthen the economy long term.
Florida Gulf Coast University professor of Educational Leadership, F. King Alexander shares that perspective.
"Students are now saddled with $1.76 trillion worth of debt. The average debt is about $40,000. And it impacts about 44 million students that have just left college," Alexander said.
Biden's plan would forgive $20 thousand in federal money for those who received a Pell Grant and $10 thousand for anyone making under $125,000 each year.
"Any kind of debt relief we can provide them should be good for the economy, because I'm afraid we're turning the new generation of students and graduates into a generation of renters, and not buyers because they're saddled with such debt when their parents and many of the critics of these plans went to school when it was either free or very, very low... much lower than it is now," Alexander said.
He argues the original responsibility falls on state legislatures.
"They have not been providing adequate public funding to keep our colleges more affordable each and every year," Alexander said.
Depending on the Supreme Court's ruling in late June into early July 2023, borrowers could begin paying back their debt after August 29. Interest would start accruing at that time as well, something frozen since the start of 2020, coined as COVID-19 relief.
