Atlanta residents weigh in on Biden’s student loan forgiveness plan

Published: Aug. 24, 2022 at 6:35 PM EDT
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ATLANTA, Ga. (CBS46) - President Biden announced he is cancelling up to $10,000 worth of loan debt to qualifying Americans, and an additional $10,000 for Pell grant recipients. People who earn less than $125,000 a year, or families earning less than $250,000 are eligible.

Biden also announced he is extending a pause on federal student loan payments through the end of the year.

But there was mixed reaction in Georgia.

“I’m near the top of the income eligibility. I don’t need this. If they’re going to spend 300 billion on something, I’d rather them give money to poor people - not people like me,” said Alan, who goes to Georgia Tech. “[But] obviously everyone is happy to get free money.”

Professors at Emory University’s Goizueta Business School say while it’s too early to tell how this will impact inflation, it’s unlikely it’ll make it worse.

“I don’t think this is going to have an impact on inflation. I would suspect that most people would be uncomfortable with this for other reasons, namely there’s probably a lot of people out there who didn’t get relief on their student loans,” said { Tom Smith, economist, and professor at Emory University’s Goizueta Business School.

For Usha Rackliffe, former CFO for the Board of Regents for the University of Georgia, she said this will, at the very least, positively affect many Americans’ personal budgets.

“If you look at the total debt in Georgia, for borrowers in the state of Georgia, that amount is $68.6 billion,” said Rackliffe. “This is huge for people in the country - people who have borrowed money, and who find themselves owing a lot of money. This is a major help, and a major boost for them economically.”

WATCH: Ray Martinez, President of Financial Literacy service EVERFI, weighs in on Biden’s student loan forgiveness plan and the need for students to stay prepared.