Md. Comptroller Says ‘Hats Off’ To The President For His Plan To Erase Student Debt

But he says we need to be cautious.

Md. Comptroller Peter Franchot

Annapolis, Md (KM) The plan to erase some federal student debt could have some positive benefits for Marylanders, but we need to be cautious. That’s according to Comptroller Peter Franchot., who notes that student loan debt is a major problem in the country, which can prevent some college grads from purchasing a home, securing credit or pursuing their dreams.

“Hats off to the Biden Administration for at least to trying to come with a moderate, centrist approach towards doing something, but not risking inflation and recession,” he says.

On Wednesday, President Biden introduced a plan which would forgive $10,000 of student loans for individuals making less than $125,000 a year, or households making under $250,000 annually. The Chief Executive is also canceling an additional $10,000 for those who received federal Pell Grants to attend college.

While Franchot is praising the plan, he says we need to be cautious. “However, we don’t want to mess with a deep recession because we’ve done that in 2008 and 2009,” he says. “It lowers the whole state’s economy  if we go into that kind of situation.”

He says this plan could benefit some Marylanders struggling with student debt. “But obviously there are a large group of people who are making less than $125,000, and {households making} less than $250,000,” says Franchot. “There will be opportunity  if it’s all held up in court.”

This plan could be facing a court challenge over whether the President can set up such program on his own, or  needs the support of Congress.

By Kevin McManus