Students in Alabama and across the nation are waiting on a decision by the U.S. Supreme Court that could hit their wallets. Student loan payments are expected to resume after being paused for the pandemic. The high court is deciding on the Biden Administration’s loan forgiveness plan that would wipe out more than four-hundred-billion dollars in student debt. Observers believe it might be struck down because of the court’s conservative majority. Dr. Jim Purcell is the Executive Director for the Alabama Commission on Higher Education. He says the decision on loan forgiveness will have an impact on how Alabamians and Americans spend their money.
“I think will change some of the dynamics in our society, should those loans be forgiven. And I’m optimistic that if it does happen, that it will actually be a positive thing for the country,” said Purcell.
The justices’ decision will determine if borrowers will get up to twenty-thousand dollars in debt cancellation pledged by President Joe Biden. Dr. Purcell says the loan forgiveness might not be good policy but could still be positive for the country.
“A lot of the decisions are not necessarily based on whether it’s a good idea or a bad idea but whether the caveats for being able to do loan forgiveness during a national emergency were used correctly,” said Purcell.
Some twenty-million people would have their debt entirely cleared by the policy if it’s left in place.
