Written by Hudson Crozier
Most Americans are worried about rising inflation, prompting many to object to Biden’s move.
Background: The White House is expected to cancel $10,000 in student loan debt for those making under $125,000 a year and pause loan payments for about four months. For those who received Pell Grants, $20,000 will be forgiven.
Unprecedented: The waiver of $10,000 per individual, which Biden promised when he ran for president, would be the largest ever recorded for federal student loans. A nonpartisan analysis from the University of Pennsylvania estimates the cost at $330 billion.
From the left: Democrats largely support forgiving student debt to relieve financially burdened graduates. Some have proposed going further than Biden’s plan and canceling $50,000 per borrower or all student debt. Inflation is not a concern.
From the right: Conservatives worry the decision would severely worsen the inflation crisis. Some also argue that canceling student debt unfairly forces taxpayers to pay for others’ irresponsibility. Others say that forgiving loans bandaids the issue and does nothing to punish predatory universities.
Big picture: A CNBC poll from this month found that 59 percent of Americans “are concerned that student loan forgiveness will make inflation worse.” Still, Biden seems determined to live up to his campaign promise and appease young voters before midterms.