The White House downplayed concerns that President Joe Biden forgiving certain federal student loan debt will worsen inflation.
White House press secretary Jen Psaki declined to comment Thursday on modeling by nonprofit organizations, such as the Committee for a Responsible Budget, that Biden exercising executive power to cancel select student debt would exacerbate rising consumer prices, especially since the president had not presented any proposals yet.
“When you look at the choices that need to be made, the president is looking at the impact of student loans, something that many people in this country, millions of Americans, undertook to get a better education to make sure they were advancing their own knowledge to maybe help their family have a better life,” Psaki said. “Finding ways to provide relief to students to make sure that these working-class, working families are getting relief is more important than tax cuts to millionaires, billionaires, and corporations.”
Psaki similarly dismissed speculation that West Virginia Democratic Sen. Joe Manchin may not support renewed attempts to pass a social welfare and climate-focused spending bill before November’s midterm elections if Biden were to forgive less than $50,000 in student debt for some borrowers. Manchin decided against endorsing Biden’s signature $2 trillion-plus “Build Back Better” agenda last year because of the economy.
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“The way that inflation impacts people across the country is costs, right?” Psaki said. “What we’re talking about here is how to provide people with relief or how we can provide them with relief or consider providing them with relief so that they have more money to spend on things in their lives.”
She added Biden has already done that, in part, by extending the student loan repayment pause and addressing problems with Obamacare.
Biden told reporters earlier Thursday that he was taking “a hard look” at unilaterally canceling some student debt, though Psaki alluded to the possibility the action could be means-tested.
Student debt forgiveness’ most vocal advocate, Democratic Sen. Elizabeth Warren of Massachusetts, also used the Sunday news shows last weekend to defend the move from claims it would create more inflationary pressure.
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“Not paying student loans has been baked in for three years now,” she said. “As President Biden himself says, the way we deal with inflation is not by making people poorer. The way we deal with inflation is we attack high prices head-on, price gouging. We straighten out the supply chain so goods can come in to people.”
