Larry Summers says student loan cancellation 'increases inflation'

If the Biden Administration wants to cancel student loan debt for millions of people, it should beware of offering "unreasonably generous" relief because it could contribute to inflation.

Student loan debt relief is spending that raises demand. It consumes resources that could be better used helping people who don't have the chance to go to college.

Student loan relief will be inflationary if tuitions are raised.

The pause on federal student loan debt payments is nearing its end. The pause was implemented by both Donald Trump and Joe Biden at the beginning of the COVID-19 epidemic. Some people think Biden will extend the pause yet again, but others think he will announce a forgiveness policy. Biden has said in the past that he would forgive student debt.

The White House expects Biden to make a decision on student loans by the end of August.

She told reporters that the president understands how student loans can affect a family and put a lot of weight on a family's pocketbook. We will let him know when he has something to say.

If student loan relief is granted, it should not set a precedent.

He said that it should only be given for the first few thousand dollars of debt.

Does the Summers thread have any bearing on Biden's decision? Maybe it will.

The influence of the White House has been felt for "some time" according to a recent report. According to reports, the Harvard University economist was behind Manchin. The climate, tax, and health care bill that was signed into law was a big win for Biden.

Many people think that student loan forgiveness will cause high inflation. According to a CNBC survey, 49 percent of Americans are worried that student loan forgiveness will make inflation worse.

A total of 5,142 people were surveyed from August 4 to August 15. Thirty percent of respondents said there should be no student loan forgiveness for anyone, but 34% said those in need should have their loan forgiven.

A continuation of the current moratorium would benefit surgeons, lawyers, and investment bankers.

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