President Joe Biden is making a final decision on whether to fulfill his campaign pledge to cancel student loans at a politically precarious time.
Biden wants to avoid alienating his young supporters ahead of the November elections, but he faces a tough choice as canceling student debt in the midst of high inflation might spark a backlash, potentially costing him the midterms.
In April, Biden extended the moratorium on student debt payments for the sixth time through August 31. Borrowers have gone more than two years without making a single payment or accruing additional interest on their student loans.
Critics argue that canceling or delaying student loan payments is a bad policy that will merely stoke the flames of inflation and do more harm to the economy. High inflation, they argue, is a hidden tax that disproportionately affects the poor….