Texas economy

Loan forgiveness could hurt economy, says UTEP professor

EL PASO, Texas (KTSM) — The Biden administration is expected to make a decision on blanket student debt forgiveness before the self-imposed Aug. 31 deadline.

The president reiterated that if he used his authority for loan forgiveness, it would not be for more than $10,000 per person.

Nathan Ashby, professor of economics at UTEP, explained that the economy is not equipped to completely erase student debt, but a few students say they would be grateful for partial relief.

According to Dr. Ashby, if student debt was completely wiped out for those who graduated or left college, he predicts that inflation will continue to grow or worsen in the economy.

“The economy is very tight and then all of a sudden as good as it can be for some people, inevitably that’s just going to put more pressure on prices and how that affects the rest of the world. economy could lead to a recession.”

For a UTEP student, Heavyn Robertson, the possibility of being handed over nearly $10,000 would be helpful, but it should be more to help the student even more.

“I don’t think $10,000 is necessarily enough, but I think it would help a lot of people even for that amount so they don’t have to worry anymore.”

International student, Keioa Plascencia says that although she has not taken out a student loan, she thinks this amount is more than enough to help the average student at least at UTEP due to the cost of tuition.

“I think it would be because personally I know how much tuition is and for example this semester I’m going to pay around $6,000 so I think for them it would be very helpful because it’s almost a year entire tuition fee without having to actually pay it back to someone.

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