One of President Joe Biden’s promises for presidency was eliminating all student loan debt, but that has not happened.
As inflation continues to impact the United States, eliminating debt may no longer be happening.
This would help 11.8 million Americans and eliminate $320 billion in debt.
Others believe that eliminating all student loan debt would be what helped the economy the most.
Others say it would do the opposite as a federal spending package, increasing inflation.
How would eliminating student loan debt cause worse inflation?
The Committee for a Responsible Federal Budget shared that cancelling all student loan debt would imcrease inflation by 0.1% to 0.5% one year after payments ended.
They also stated it would increase consumption and demand before addressing current supply chain issues.
No plans have been released, and if there are any, the administration will probably put restrictions on them for things like income.
Right now, there is a pause on student loan payments until the end of August.