President Biden has announced a plan to cancel up to $10,000 in federal student loan debt for millions of Americans. Borrowers who earn less than $125,000 per year will be eligible for up to $10,000 in loan forgiveness, while Pell Grant recipients will be eligible for an addition $10,000. Current students will also be eligible for debt relief, but not future students, the White House says. Biden will also defer student loan repayments until the end of the year. Most people will have their debt cancelled automatically, but some will have to apply for debt relief, according to the Education Department.
Is this the right move? Should Biden have taken it further with even more debt forgiveness? Are there any potential economic downsides to cancelling student loan debt?
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