Forbearance actually would contribute to immediately available cash, so yes, it’s inflationary. A $10k principle reduction on a 30 year loan is largely immaterial from an inflationary standpoint.
LOL
Average student loan payment is something like $350/month last I read a few years back. (Edit: just googled - it's running around $250/month. )
Heard a news blip saying 1 in 3 borrowers would have their debt completely wiped away by Biden's plan. Whether that's $350/month or $100/month that's a bunch of money into the system that wouldn't normally be there. Same goes with the other 2/3 of borrowers. Yes, it will be inflationary - by how much there's no real way of knowing.
The interesting thing here is we're being told this is peanuts in terms of inflation... while at the same time being told how student loan debt is so high that it's ruining 'Mericans who went to college. Preventing them from owning homes, etc.
So either this is an essential giveaway with purpose (meaning we're pumping a significant amount of money into the system)... Or the loans really are peanuts and this will just be a bread and circuses giveaway (not inflationary, just fun!)
I would expect a nurse to understand this.
Understand your lawyer spin?
Yes, absolutely.
The interesting thing is most of these loans are taxpayer funded by via T bonds.
And that "cancelled debt" will still have to be repaid by the taxpayer.
Which means all those people who couldn't afford to go to college will now be paying back the loans of those who "learned 2 code".