WF reaction to SCOTUS blocking student loan forgiveness

Published: Jun. 30, 2023 at 7:08 PM CDT|Updated: Jun. 30, 2023 at 7:15 PM CDT
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WICHITA FALLS, Texas (KAUZ) - The Supreme Court has blocked President Biden’s student loan forgiveness plan that would have helped millions of Americans. We spoke to an MSU Texas professor and a financial advisor about the justices’ decision.

“The better thing to have done is to assume you are still going to have the student loan and you’re gonna have to pay it off,” said Gary Silverman, Founder of Personal Money Planning.

The student loan forgiveness plan would have given relief to around 40 million Americans who were eligible for the program which could have paid off $20,000 in student loan debt if approved.

“For those people who did that they’ll be disappointed, they should be disappointed but they’re not in a bad financial state. For those people who have basically structured their lives assuming, I do not have to pay this loan off they’re the ones that are going to be in trouble because they either don’t have the budget, the will, or the means to go ahead and pay off that loan,” added Silverman.

One political science professor at MSU Texas said the economy will see the effects made by the Supreme Court.

“It’s gonna have trickle-down effects for the housing market, or maybe it’s sending their kids to school or just buying, going on vacations or new clothes or whatever it might be,” said Dr. Steve Garrison, Political Science Professor at MSU Texas.

Silverman said if the loans are forgiven someone would be responsible to pay them back.

“Making those loans go away shifts to somebody else and that somebody else may be those evil rich people you hear about but they affect the economy as well. It will be immediate and noticeable though for how it affects the general working class. They’re the ones who are buying the refrigerators, the washers, and dryers, they’re the ones who are establishing their first homes,” said Silverman.

Both Dr. Garrison and Silverman said the fight for student loan forgiveness may not be over.