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Student debt: Biden has a big decision to make

Student debt: Biden has a big decision to make

Cancel culture

President Biden has a big decision on his hands: what to do about student loans. Biden is under mounting pressure from his party to forgive or cancel billions, or even trillions, of dollars worth of student loans — a debt that in 2003 was roughly one-third the size of credit card debt, but has ballooned to be almost twice as big in less than 20 years.

So far borrowers have been given a pass for much of the pandemic, with payments (and crucially interest on the loans) having been paused for more than 2 years. The latest pause on payments is set to last until August 31st.

Biden has ruled out the $50k per person forgiveness some are calling for, yesterday saying that he would reach a decision on student debt "within a month".

Inflation is... good?

If you owe a terrifying amount in student loans, you may actually be happy about inflation. With interest paused on the loans higher inflation is actually eroding the principal value of your debt.

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