Senator Warnock Celebrates Positive Impact of Student Loan Forgiveness in Georgia
1,674,500 Georgia residents, or 15.4% of the state’s residents, have a cumulative $69.3 billion in student loan debt
Up to 450,000 Georgians could see their student debt erased completely, and up to 309,000 Georgians could have their debt cut in half or more
Student loan forgiveness will not increase inflation
Over 1.6 million Georgians are burdened with outstanding student loan debt—their monthly payments consuming their incomes and preventing them from accumulating wealth and growing the economy.
Knowing this, Georgia Senator Reverend Raphael Warnock spent months advocating student loan forgiveness to the Biden Administration before President Biden made the decision to cancel $10,000 of student loans for Americans earning under $125,000, and cancel $20,000 for Pell grant recipients.
“This is personal for me because I’m a product of good public policy. I attended college on Pell grants and student scholarships, and I know the doors that higher education can open—when you can afford it. This announcement will help many Georgians, some of whom have been struggling with debt for decades, get their financial footing, and it will help keep our economy strong and growing,” Warnock said.
Warnock intends to take additional steps to ease debt burdens across Georgia by making college more affordable and creating opportunities for Georgians looking to enter the workforce through job training and other programs that prepare workers for growing fields.
Warnock discussing student loan forgiveness in Georgia.
Positive Economic Impact
Debt cancellation spurs entrepreneurship, increases homeownership, and lowers the financial strains on Georgians in every corner of the state.
Student Loan Forgiveness will help Georgians:
Pay off consumer debt at a faster rate.
Save for educational opportunities for their children.
Save money for a down payment on a home.
Invest in their tax-advantaged retirement accounts.
Student Loan Forgiveness will NOT:
Drive up inflation in the near or long term
Lead to superfluous spending
Economists estimated student loan forgiveness would have only a “small” overall impact on spending because it’s going to people who need it to get by, not those flush with cash. As a result, the forgiveness would have a similar effect on inflation—one that would be “more than fully offset” by ending the pause on payments, resulting in an overall decrease in inflation.