Last year, I heard about a proposal for $10,000 in student debt cancellation from candidate Biden. The news on this has been sparse since he took office. Does anyone know what's going on with the broad student loan forgiveness promise? Is anything likely to come of it?
Also, to make this a more economics-related thread, discuss the merits of this proposal.
He's balked on this proposal because they know it generates a lot of revenue for the federal government. Biden could propose this idea to Congress, and if they don't act on it he should try to cancel at least $10,000 via executive order.
From an economics standpoint, cancelling student debt would encourage consumer spending because i t would help people who are on the margins choosing between paying loans and spending. It is estimated that cancelling student debt will increase yearly GDP by $86 billion.
