Survey: Most Americans fear student loan debt forgiveness will trigger more inflation

A new nationwide poll finds the majority of Americans are concerned that a forgiveness of student loan debt will drive inflation to higher levels.

According to a CNBC poll of 5,142 adults, 59% of respondents said they were apprehensive that student loan forgiveness would make inflation worse, while 30% said there should be no student loan forgiveness for anyone. The survey also found that 34% of respondents stating only those in financial need should have loans forgiven while 32% were in favor of loan forgiveness for all who have student debt.

There are roughly 44 million borrowers who owe a collective $1.7 trillion in federal student loan debt. A pause on loan repayments that was enacted at the start of the Covid-19 pandemic is scheduled to expire on Aug. 31. CNBC reported that some experts are predicting that the Biden administration will announce a decision on whether it will extend the pause prior to the Aug. 31 deadline.