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 legal challenges are anticipated regarding the debt forgiveness?

What was the default rate among borrowers before the pandemic pause?