CEDARVILLE, Ohio (WDTN) – President Biden answered questions Friday about the impact his student loan forgiveness plan will have on inflation. It’s getting mixed reactions from Miami Valley experts and graduates.
While many with student loans are excited to see some of their debt forgiven, Cedarville University graduate Jessica Morgan said she believes loan holders hold responsibility for repayment.
“It confuses me as to why somebody else would pay for something that I chose to do,” Morgan said.
Morgan said she has $30,000 in federal student loan debt, and $68,000 in a Parent Plus loan. She’s been working to pay that down even during the pause.
“I’ve been paying on the principle as opposed to the interest and the principle,” Morgan said.
President Biden fielded more questions Friday about his Student Loan Debt Relief Plan and its impact on inflation. Biden said his plan will not cause inflation. Instead, he said it will generate economic growth because it will free up money for Americans.
Cedarville Professor of History and Law Dr. Marc Clauson said some economists are worried it could cause the opposite result.
“The people who benefit from this have all this new money,” Clauson said. “$500 billion potentially is going to inject be injected into the economy. That’s going to continue the cycle of inflation, make it worse.”
Clauson said there are long-term actions the Biden administration could have taken, like addressing college costs.
“We’ve had over the last 30, 40 years, we’ve had a double the increase of administrators and no change in faculty, so that means that we’re having administrative bloat, which costs a bunch of money,” Clauson said.
Clauson said money for Biden’s program will likely come from the taxpayers or the country will have to borrow more.
While Morgan will qualify for loan forgiveness, she said she chose to take on her student loans and doesn’t expect help to pay them.
“I go buy something, I’m expected to pay for that thing, and I don’t expect other people, like taxpayers or the government, to pay for what I bought out of my own will,” Evans said.
Biden said in remarks about his plan that he does want to tackle reducing college costs, including doubling the amount awarded for Pell Grants.