Some Economists Say Loan Forgiveness Plan Could Increase Inflation

The video discusses the mixed reactions to student debt relief from students, economists, and political critics. Students express both relief and concern, as some have debts exceeding $10,000. Economists largely believe the relief won't significantly impact inflation. Politically, there are criticisms from both sides, with some arguing it's unfair to taxpayers. Legal challenges are anticipated, questioning the executive branch's authority to enact such measures without Congress. The taxpayer cost may be mitigated by the fact that many loans were unlikely to be repaid due to pandemic-related pauses.

What is the main concern of students regarding the $10,000 debt relief?

• It will increase their debt burden.

• It is only available to law students.

• It is insufficient for those with high debt levels.

• It is too much relief for most students.

How do most economists view the impact of the debt relief on inflation?

• They think it will have no impact on inflation.

• They believe it will significantly increase inflation.

• They are unanimous in their opinion.

• They believe it will have a small impact, if any.

What amount of debt relief did the NAACP advocate for?

• $100,000

• $50,000

• $20,000

• $10,000

What is a major legal question surrounding the debt relief plan?

• Whether it applies to international students.

• Whether it will be repaid by the students.

• Whether it will be funded by private banks.

• Whether it can be implemented without congressional approval.

What was a significant issue with student loans even before the pandemic?

• One in ten borrowers were defaulting.

• Most loans were being repaid on time.

• Interest rates were decreasing.

• All loans were forgiven.