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Experts say loan forgiveness could lead to better economy

Why loan forgiveness is necessary
Student Loans
Posted at 6:08 PM, Aug 25, 2022
and last updated 2022-08-25 21:38:01-04

TALLAHASSEE, Fla. (WTXL) — “There are lots of very real daily life decisions that are going to be made easier for people who have been trying to manage paycheck to paycheck,” says Lara Perez-Felkner.

Florida State University Professor of Higher Education and Sociology Lara Perez-Felkner studies how social conditions influences student’s college and career outcomes. She believes loan forgiveness is necessary and will provide some sort of relief for basic daily expenses.

“Like can you pay for a car, even a used car can you do that in order to go to your job and be able to continue to participate in the workforce,” says Perez-Felkner.

The average college student graduates college with debt equal to a new car.

FSU undergraduate students borrow an average of $17,759 in federal student loans over their academic career. In 2021, nearly 5,000 Florida A&M University students took out federal loans worth upwards of $12 million collectively. That’s almost half of their total enrollment.

FAMU senior Jayda Miller feels regardless of the loan forgiveness, she’d rather move with caution when approaching financial freedom.

“Still want to move with precaution as if he’s not doing it because the more, I save now the more I’ll have later,” says Miller.

Experts say loan forgiveness can lead to a rise in the economy through new homes, cars, and even build credit.