Many student loan borrowers will see their debt disappear. What happens next?

, economists have already begun debating whether the action could compound the surging inflation that continues to bedevil the U.S. economy.

Among the most prominent voices warning that the forgiveness would lead to increased inflation has been Larry Summers, former treasury secretary and Harvard University president emeritus, who“I hope the Administration does not contribute to inflation macro economically by offering unreasonably generous student loan relief,” he wrote. He said the debt relief would translate into increased spending, which would in turn increase overall demand and, thus, inflation.

The Committee for a Responsible Federal Budget, a nonpartisan, nonprofit organization focused on fiscal policy issues, echoed the concerns,that $10,000 of debt cancellation would add 0.15% to one common measure of inflation, the Personal Consumption Expenditure, or PCE, price index, with a compounding effect over time.

The PCE price index is a more comprehensive measure for the price of goods and services than the more commonly watched measure of inflation, the Consumer Price Index, or CPI. Unlike the CPI, the PCE has not shown signs of slowing.

Wow, the bias is usually a little more tame. Felt like I was watching Fox “News”

I’m pretty sure they are saying n promising this because elections are coming up n they want votes supposedly this won’t take place until January how suspicious

Of course it is. It’s taking outstanding federal debt and just creating money out of thin air to pay for it.

Education Education Latest News, Education Education Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Biden nears decision on student loan cancellation, moratorium extensionThe president is expected to cancel $10,000 per borrower making $125,000 a year or less. (via NBC News) This should come with a 150 point reduction in their credit score for the next 7 years. that means everyone making less than 125000 that doesnt have student loan debt, can add 10000 to their tax return this year Biden’s move to cancel student debt would cost more than $300 billion, study says
Source: clevelanddotcom - 🏆 301. / 63 Read more »

Big student loan forgiveness plan announced by BidenWASHINGTON (AP) — President Joe Biden on Wednesday announced detailed plans to deliver on a campaign promise to provide $10,000 in student debt cancellation for millions of Americans — and up to $10,000 more for those with the greatest financial need — along with measures to lower the burden of repayment for their remaining federal student debt. you saddled our grand and great grandchildren with this debt, you have 20% of Ukraine so called aid so it doesn't make s difference to you. you are the worse president ever 💩💩💩💩💩🤡🤡🤡🤡🤡🤡🤡 How soon does this take effect? 👀👀 POTUS DOES NOT have the authority to forgive student loan debt, he is abusing the power of the office of President.
Source: AP - 🏆 728. / 51 Read more »

Biden to Announce Student Loan Forgiveness PlanPresident Biden is expected to announce Wednesday that he will cancel some federal student loan debt for tens of millions of Americans This is a terrible idea! WhiteHouse Nothing is free. They'll pay I'm another way.
Source: WSJ - 🏆 98. / 63 Read more »

Biden expected to make announcement on student loan relief on WednesdayIt's not yet clear what he'll announce. The pause on student loan payments is currently scheduled to end on Aug. 31.
Source: ALNewsNetwork - 🏆 583. / 51 Read more »