WHEELING, W. Va. (WTRF)-While Biden’s Student Loan Forgiveness is a relief for many individuals, it also comes with a steep price tag.
”I’ve racked up a lot of debt and it would be a huge financial blessing to like get rid at least even a little bit of that.”Shruti Satish, Ohio State University student
“My parents were able to get by working through college and pay for it themselves, but I can’t do that on my own.”Izzy Bahamonde, Partlan/UC Santa Barbara Student
Biden’s student loan forgiveness comes as a nice surprise to a lot of people, but financial expert Jason Haswell warns it’s not all it’s cracked up to be.
“The people love it who are getting it, but I think if they dug deeper in eth numbers, they may see that long-term, it may not help them quite as much as they think it does.”Jason Haswell, financial expert
On one hand, Haswell explains student loan forgiveness is digging the government into a deeper debt than before. That’s now lumped with debt from COVID-19 and the financial crisis from years ago. That debt will be paid somehow sooner or later.
Haswell fears that will fall back on us: the taxpayers.
“It has to be made up somehow in order to get a certain budget. If it’s not made up, you’re gonna have certain things cut, certain programs, or the taxpayer is going to have to pay more.”Jason Haswell, financial expert
Aside from putting everyone in a tough spot, Haswell explains Biden’s plan is also sending the wrong message, shoving the notion of ‘paying back money you owe’ to the side.
“It doesn’t teach people a very good lesson. Basically, you took the money, you got the education and go ahead, we’re not going to make you pay it. This is like if the bank just said, ‘okay now you own your home, and now, you don’t owe us the balance on your mortgage.”Jason Haswell, financial expert
So, while the student loan forgiveness eases the burden off many for now, Haswell isn’t very optimistic, and only hopes people will bounce back from this somehow.
Meanwhile, there’s still many questions ahead.
“Where do we go moving forward? That’s the other question. If you get a student debt, do you owe it? Do you not owe it? Does it change the student debt market? Does it change the debt market in general? Again, not a great message to send in my opinion. “Jason Haswell, financial expert
Haswell explains the government will have to re-assess their budgets in the meantime.