U.S. President Joe Biden is set to announce on Wednesday that the U.S. government will forgive $10,000 in student loans for millions of American college-goers, a move that could boost support for his fellow Democrats in the November congressional elections but also may fuel inflation.

Cancelling the debt will free up hundreds of billions of dollars for new consumer spending that could be aimed at homebuying, adding a new wrinkle to the country’s inflation fight, according to economists.

U.S. consumers carry a massive $1.75 trillion in student loan debt, most of it held by the federal government, the result of university tuition fees substantially higher than in most other rich countries.

For more information, go to https://globalnews.ca/news/9081983/biden-forgives-student-loans-americans/

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