Student debt relief package could lead to deflation, U.S. official says

2022.08.24 20:06

FILE PHOTO: Students react as U.S. President Joe Biden takes the stage during the commencement ceremony at the University of Delaware in Newark, Delaware, U.S., May 28, 2022. REUTERS/Elizabeth Frantz/File Photo

WASHINGTON (Reuters) – A plan unveiled by the Biden administraton to forgive $10,000 in federal student debt and defer payments through year end could have a neutral impact on consumer prices or even be deflationary, a senior administraton official said on Wednesday.

Speaking on a call previewing President Joe Biden’s remarks about the program, officials also said the program could benefit 43 million student loan borrowers.

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