BALTIMORE — People with federal student loans are anxiously awaiting to find out if President Biden will call for another extension on payments.
The current pause on a payments is set to end a week from Wednesday, on August 31st.
A lot of people carrying these loans also are holding out hope the president might even wipe out their student loan debt.
A new CNBC poll found more than half of Americans worry forgiving student loan debt will make inflation worse. It has some people concerned about the country's current economic situation, including Governor Larry Hogan.
Borrowers haven't had to make any payments on their federal student loans for more than two years, since the start of the pandemic in march of 2020.
Federal student loans have not accrued any interest since that time.
Extending the pause on payments once again or canceling student loan debt would be good news for borrowers, however those surveyed in the CNBC poll believe canceling student debt would give borrowers more money to spend and in turn, have the negative effect of increasing inflation.
CNN reports the white house is leaning toward canceling ten thousand dollars worth of student loan debt for borrowers who make less than $125,000 a year.
U.S. Education Secretary Miguel Cardona says President Biden will make a decision about the status of student loans in "the next week or so."
While Hogan has been supportive of providing relief for borrowers in the form of tax credits, he doesn't support canceling student loan debt altogether.
Governor Hogan expressed his concerns during an appearance on Fox News onTuesday.
“What we're working on here in our state is trying to make college more affordable and to ramp up more workforce development, job training and apprenticeships,” Hogan said.
“Not everyone has to get a four-year degree and making community college an option and our universities more affordable is the way to go, but I really think the Biden plan is a really bad idea at the worst possible time,” Hogan added.
Several states including Maryland offer tax credits for student loan debt.
“We've got inflation. We've got a recession and inflation at the same time. Pumping more money into the economy is not the answer. We do have a serious problem with the huge amount of student debt that's out there, but waiving the debt is kind of penalizing people who work three jobs to pay things off,” Hogan said.
In January, Hogan announced more than 40,000 people benefited from the state's Student Loan Debt Relief tax credit program.
Maryland taxpayers with at least $20,000 in student loan debt and at least $5,000 outstanding can apply for the program.
About three years ago, the governor issued an executive order establishing the SmartWork Student Loan Repayment Plan to offer loan forgiveness to those who take on hard to staff state government jobs.
The president's decision whether to extend the payment pause once again or even cancel some student loan debt could come any day now as announcement is expected before Wednesday, August 31st.
