Experts Say Consequences of Biden Plan to Cancel Student Loan Debt Would Have ‘Enormous Consequences’

From Fox Newsposted 2 weeks ago

Article Summary

President Joe Biden’s plan to cancel student loan debt could lead to higher inflation and perceived inequality, several experts warned.

Biden said in a press conference late last month he is considering canceling “some” student loan debt.

“I am not considering $50,000 debt reduction, but I am in the process of taking a hard look at whether or not there will be additional debt forgiveness,” Biden said.

Former Congressional Budget Office Director Douglas Holtz-Eaken said canceling student loan debt would do nothing to slow rising inflation in the United States.

“That’ll produce the most inflation,” Holtz-Eaken told Fox News Digital. “If you forgive some of the debt, that’ll create a little more inflation. The least inflationary thing to do is to have people actually go back to paying their bills. That would take care of it.”

Economist Nicholas Eberstadt told Fox News Digital at the Milken Institute 2022 Global Conference that a “magical, universal debt relief” would actually harm those it is intended to help.

“We know already that would be a tremendously regressive transfer towards the well-off,” he said.

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