The impact of the student loan debt relief in the Mid-South

President Joe Biden announced student loan relief on Wednesday.
President Joe Biden announced student loan relief on Wednesday.(MGN)
Published: Aug. 28, 2022 at 10:34 PM CDT
Email This Link
Share on Pinterest
Share on LinkedIn

MEMPHIS, Tenn. (WMC) - Biden’s Administration’s debt relief will help reduce student debt or get rid of it entirely.

A retired economist named Dr. Gnuscke, the Director of the Sparks Bureau of Business and Economic Research at the University of Memphis spoke about the relief impact on the Mid-South.

“It’s extremely important in Memphis and surrounding areas because this is a low-income part of the country, and many of the families couldn’t send their kids to school because they couldn’t afford to pay off the debt it was incurring.”

He says student relief will have a tremendous impact on the Mid-South, an area that generally struggles financially.

“You’re still going to have to pay back student loans in excess of the ten thousand dollars, or in some cases of twenty thousand dollars; you’ll have to still be responsible for paying that money back, so you might as well plan for it. It’s going to be the first of the year but get ready because it’s coming.” (Dr.John Gnuschke)

The retired economist stated how the debt relief could also impact the U.S. economy and inflation.

“There’s a lot of concern that ‘gee, isn’t this inflation airing?’ Well, the little bit of inflationary impact it’ll have isn’t significant, okay, this is not a supply chain problem, this is not a gas problem, this is not a grocery store problem, this is money in people’s pockets, and to the extent that they buy things with it, that’s probably exactly what we hoped they would do.”

Click here to sign up for our newsletter!

Click here to report a spelling or grammar error. Please include the headline.