Omaha, Nebraska — Creighton University Economist, Ernie Goss, says student loan forgiveness ends up being a windfall for colleges and universities, but he’s not in favor of them.
Goss says one problem is schools end up raising tuition and he says it has negative impacts on what is sometimes thought of as income inequality.
Those who support loan forgiveness say the recipients will spend the money they would have paid on the loans on other things and also help cut inflation.
Goss conducts the Midwest Economic survey of purchasing managers, and he also surveys rural bankers. He says inflation has been a big issue in keeping the economy from a faster recovery. Goss doesn’t believe the recently passed Inflation Reduction Act will help, nor do rural bankers.
Goss doesn’t think the plan will recover but the tax revenues the administration has touted.
Goss’s survey that came out earlier this month showed the Midwest economy has been moving along pretty well despite issues with inflation, shortages of workers, and still some supply chain disruptions and slowdowns.
