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Biden Student-Loan Forgiveness Raises Inflation, Budget Risks
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wsj.comPresident Biden’s decision to cancel up to $20,000 in student debt for millions of borrowers will have broad economic consequences, including on inflation, consumer behavior and government budgets, though the degree of those effects is uncertain.
Assuming the plan survives any potential legal challenges, the move to cancel a lump-sum of debt for more than 40 million borrowers and change repayment rules could provide a modest boost to longer-term inflation and lead to larger federal deficits, economists say.
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