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Student loan forgiveness to benefit 43 million Americans

Economics expert weighs in how student loan relief will impact economy
Student at the University of Arizona
Posted at 4:07 PM, Aug 24, 2022

TUCSON, Ariz. — Approximately 43 million Americans have federal student loan debt which totals $1.6 trillon.

The student loan forgiveness plan could benefit women the most who hold two thirds of all student loan debt in the U.S. according to the American Association of University Women. Data from the U.S. Department of Education says American undergraduates hold nearly $25,000 in student loans after graduation.

KGUN 9 spoke with Dennis Hoffman, an economics expert at Arizona State University, to get his take on the student loan forgiveness plan and what it could mean for our economy.

"It really is a balance. Out there in terms of the argument around is student loan debt good or bad," Hoffman said. "The problems have occurred when bad actors in the education business entice relatively un-informed applicants to take on large amounts of debt to pursue degrees that are not going to put them in a lucrative position to pay it off."

So how could the forgiveness impact inflation?

"Unless we unclog the supply chains... inflation is going to continue to be a problem," Hoffman said. "If we could un-plug the supply chains, loan forgiveness or no-loan forgiveness, inflation will probably mitigate."

While of course no one has a crystal ball to predict just what it will do to the economy, the fact is 43 million federal student loan borrowers will benefit from this debt cancellation.

RELATED: Biden forgiving up to $20K in student loan debt

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Denelle Veselik is an anchor and investigative reporter for KGUN 9. It's been her dream to tell your stories for the past decade. She is extremely curious and wants to continue to use her storytelling for the greater good. Share your story ideas and important issues with Denelle by emailing denelle.veselik@kgun9.com or by connecting on Facebook, Instagram and X/Twitter.