It would increase spending power of every borrower. Instead of paying back the debt they just spend the cash on stuff that will increase in price given todays realities.
Not necessarily.
For those that no longer have a payment what you said is true.
For those that still have a payment you’re just in less debt but still having to make that monthly payment that nobody is making right now.
It will increase the velocity of money to a certain degree but how much that is, and if it can even be accurately calculated for an event like this, remains to be seen.
It will cost the federal government about 310B in future income if Biden forgives 10K per person. That being said most Democrats are sounding the alarm that 10k would be insulting and not make a dent in the actual problem while urging Biden to go for 50k per person. That would cost the federal government about 1.4T in future income the last I read.
Derrick Johnson has previously urged Biden to forgive at least $50,000 in loans per borrower, saying that student debt is racial justice issue.
www.businessinsider.com
The question will be if Republicans sue to stop it. If they do where and what their arguments are against it. Since they never sued over the student loan pause they’ve already yielded some ground on the matter.
I’m obviously against it as a matter of policy but I think people should be prepared for it to happen and make it through court.
thehill.com
