As I predicted, Biden’s latest policy announcement spelled the end of the student loan payment pause which began during Covid-19 lockdowns. However, ending the pause alone would be too unpopular so, along with that news, Biden announced student loan forgiveness.
Individuals making less than $125,000 a year will have $10,000 of their federal student loan balance removed if the order proves successful.
Many side-effects of the policy have been targeted for criticism. Rising college costs, increasing inflation, regressive effects, and moral hazards for future borrowers have been considered.
