Student debt relief expected to undo any disinflation from Inflation Reduction Act

President Joe Biden’s move to forgive mountains of student loan debt may offset any inflation reductions from Democrats’ recently enacted Inflation Reduction Act.

The announcement this week that the administration is moving forward with canceling up to $20,000 of student loan debt for borrowers who earn below a $125,000 annual income threshold came as a relief to many, but it also may contribute to the already historic levels of inflation.