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King: Canceling Student Debt Does Nothing to Help People Struggling to Pay for Gas and Groceries, Could Make Inflation Worse

EAST MOLINE, IL – Esther Joy King, nominee for Illinois’ 17th Congressional District, today released this statement after President Biden announced plans to cancel student loan debt. An estimate by the Penn Wharton Budget Model found canceling $10,000 of student debt for those making up to $125,000, which the President’s plan does, would cost more than $300 billion just this year and 70 percent of the relief would go to top income earners. Experts, including a top Democrat economist, say canceling student debt would make inflation worse.

“Paying the student debt of people making six-figure┬áincomes when there are people going into credit card debt just to pay for gas and groceries is extremely out of touch with the struggles of most Americans right now,” said King. “More government spending like this will only make inflation worse and increase costs even further. As someone who has student loan debt, I believe there are ways we can help those struggling to pay their loans, but simply forgiving the debt, putting that burden back on the taxpayers, and forcing everyone to pay for it through higher inflation is not the answer.”

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