(Finance) – The American president Joe Biden announced that the US government intends to forgive $ 10,000 in student loans to thousands of graduates burdened with debt. A move that could offer support for Democrats in the upcoming Midterm elections to be held in November 2022.
The measure intends alleviate the burden of debts on graduatesto allow a increase in consumption and investments, including buying a home. But this way it risks fueling inflation again.
The federal student loan debt is estimated at 1.6 trilliona significant burden on the American middle class, and would affect some 45 million borrowers.
If the figure announced by Biden is well below the $ 50,000 proposed by some members of the Democratic party, on the other hand the Republicans protest for a measure they define unfairbecause it will help people disproportionately.