President Clinton gave a gift to his bankster backers by signing law that made student loan debt non-dischargeable. This allowed the banksters to give loans to anyone because the loans would be chased down from them and even their co-signer parents. This flood of loan money allowed colleges to dramatically increase their prices. Two decades later, those who took student loans are having some trouble making loan payments.
As a thinly veiled attempt to buy votes, President Biden is now talking about repealing the President Clinton law. Instead, Biden wants to give some handouts for those suffering under the non-dischargeable load of debt. Having the federal government make loan payments is another form of "free" money. This money is baked by debt.
Arthur Laffer describes this as causing inflation:
Inflation is really too much money chasing too few goods. There's more to it, but that's a good first step. [Forgiving student loans] will reduce the number of goods, which is inflationary. It will increase the size of the monetary base, which is also inflationary. The two together, I don't know how much it will contribute [to inflation], but it's not a trivial amount.
Larry Summer, who served under Clinton, calls the free money unreasonably generous:
Every dollar spent on student loan relief is a dollar that could have gone to support those who don't get the opportunity to go to college, said Summers, who was secretary of the treasury under President Bill Clinton.
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