The White House announced another $7.4B in student loan debt canceled Friday. 4.3 million student loan borrowers have had debt canceled since President Biden took officeJoe Biden wiped out more student loan debt on Friday bringing the total amount he has canceled to $153 billion for 4.3 million borrowers.
'We're increasing federal borrowing to essentially reduce personal borrowing for student debt,' Goldwein told DailyMail.com. Wiping out such a large amount of student loan debt could have several effects including pushing up demand, leading to inflation.Over time, the move would force the U.S. to issue more bonds, and more people will buy those bonds instead of investing the the private sector.
'You're going to see an increase in the federal deficit and greater federal debts over time,' said Tristan Stein, Associate Director for Higher Education at the Bipartisan Policy Center. 'Biden’s policies are completely backward and illegal,' Republican House Speaker Mike Johnson responded. Policy experts note, for any policy decision there are cost tradeoffs and at some point, everyone pays some costs for different policies.
But as Republicans and conservatives push back on Biden, Democrats have hailed the administration's student loan effort.