News report

Heightened inflation fears in the United States accompany talks on canceling student loan debt

Federal student loan borrowers are waiting on the edge of their seats to see what President Joe Biden will do as another payment pause is set to expire Aug. 31.

The pros and cons were weighed with all possible scenarios, from analysts to politicians, and from financial watchdogs to economists.

However, new surveys of CNN and CNBC show that Americans feel there is not enough attention on the state of student loan debt and are beginning to fear the worsening effects of inflation if the president steps in and cancels the loans students – although the amount is unclear.

During his campaign for president, Biden pledged at least $10,000 in pardons.

A CNN poll in May revealed 56% of Democrats, and “self-described liberals (69%), said the government was doing too little on student loan debt.” The poll also shows that only a third of Republicans and “self-proclaimed conservatives” feel the same way.

Read more: Student loan debt can affect your heart health, study finds

Another one CNBC poll released on Monday morning shows that 56% of Americans fear that any form of student loan forgiveness will give borrowers more money to spend, increase demand and lead to a continuation of the upward trend in inflation.

But this particular poll also highlights that adult borrowers with forgiveness and more money in their wallet would use the funds earned to pay off other loans (53%) or save for retirement (45%).

The CNBC poll also shows that women are more supportive of student loan forgiveness than men, however, “19% of adults between the ages of 18 and 34 say no loans should be forgiven, compared to 39% of over 65 years”.