Student debt relief package could lead to deflation, U.S. official says

By Thomson Reuters Aug 24, 2022 | 11:38 AM

WASHINGTON (Reuters) – A plan unveiled by the Biden administraton to forgive $10,000 in federal student debt and defer payments through year end could have a neutral impact on consumer prices or even be deflationary, a senior administraton official said on Wednesday.

Speaking on a call previewing President Joe Biden’s remarks about the program, officials also said the program could benefit 43 million student loan borrowers.

(Reporting by Alexandra Alper, Nandita Bose, Kanishka Singh and David Lawder)