Mercer economics professor talks impact of student loan relief
A Mercer University economics professor explains how he expects student loan relief to work in the long run.
MACON, Georgia (41NBC/WMGT) — While Wednesday’s announcement about the forgiveness of student loan debt might seem exciting, one local economics professor says it’s not a good idea.
Mercer University Professor Antonio Saravia says the move will add $300 billion to the national debt. He says that burden will eventually fall on the tax payer.
“Only one third of the canceled dollars goes to the households earning less than $51,000,” Saravia said. “The rest goes to people earning more than $51,000 up to $150,000.”
President Joe Biden also extended the student loan forbearance until the end of the year. Professor Saravia says this is expected to be the seventh and final time that happens.