Peach Tree Times

As national debt soars past the $30 trillion-mark, President Joe Biden recently announced he will cancel up to $20,000 of student loan debt per borrower, while also extending the pause on federal student loan payments through the end of the year—a move that could worsen inflation.

The nation's student debt currently tops $1.6 trillion, and the details of Biden's plan show a large portion of loan relief will go to the nation's top earners. While Georgia residents currently owe nearly $70 billion in student loan debt, the Education Data Initiative reports among all 50 states, federal student loan debt totals an average of $29.0 billion per state.

Biden's student debt forgiveness plan is counteractive, according to the Wall Street Journal Editorial Board, who claim it is "an inflation expansion act." The plan will reportedly cost about $300 billion this year and even more in the future.

"That would cost about $300 billion this year, and $330 billion over 10 years,” according to the WSJ. “That’s far more than the $102 billion the Inflation Reduction Act purportedly reduces the deficit over 10 years by starting in 2027. About 70% of the loan relief would go to borrowers in the top 60% of income distribution."

Biden announced Wednesday he will cancel $10,000 of federal student loan debt for borrowers making less than $125,000 a year while the forgiveness extends up to $20,000 for those who attended college on Pell Grants, Fox News reports. In addition, Biden has extended pandemic-era payment freezes through the end of December.

This comes as the Treasury Department reports the country's national debt is $30.7 trillion.

More than 43 million Americans have federal student debt, Fox News reports. However, the latest federal data shows almost a third owe less than $10,000 and more than half owe less than $20,000.

Among Georgia’s $68.6 billion in total student loan debt, 14.3% owe less than $5,000 and 20.9% owe an average of $28,775, according to EDI data.