The Keystone Research Center and the Pa Budget and Policy Center say President Biden’s executive order to erase $10,000 in student loans for those making less than $125-thousand dollars.
And $20,000 in Federal student loan debt for lower income Pell Grant recipients will reduce student debt in the state by 1/3 and nearly three quarters of student loan forgiveness will benefit those who earn less than $82,400 per year.
But this comes after 22 Republican Governors, including neighboring states Ohio and Maryland, sent a letter asking the President to withdraw the plan immediately.
The Governors argue it ultimately rewards the rich and punishes the poor expressing fears loan forgiveness will exacerbate inflation and challenging the legality of the plan being done through the 2003 heroes act, passed specifically to help those impacted by 9/11.
But the group says with Pennsylvania has one of the lowest rates of funding for higher education, says it’s creating an even greater financial strain for families across the Commonwealth.
“Jobs are increasingly requiring higher education, but we continue to underfund higher education and students are strapped down with higher education debt.”