On Friday’s PBS NewsHour, Mark Goldwein, Senior Vice Chairman of the Federal Budget Committee and Senior Political Director, said that eliminating student debt “probably added half a point to the inflation rate.” And eventually, student loan debt levels will return to their former levels in just three years.
“You see, if we’re going to fix the student loan system, we have to fix the student loan system. Doing something that gently wipes out debt with an executive order won’t work. We calculate that in just three years the debt will return to its previous level. The income-based payment system is currently not perfect. there [are] too many different programs. People don’t understand how they work. There is a difficult calculation. However, it is a fact that we could not complete most of them. Because they are relatively new. So we must work with Congress and the President to try and unify these systems. President Trump and President Obama have made similar — similar suggestions — to do just that. ”
“We have an extremely hot economy where consumption exceeds what we can already do. So whatever we do to get people to pay off debts or spend more than they save will actually make inflation worse. We estimate that a full debt reduction is likely to add half a point to inflation.”
Source: Breitbart
