President Joe Biden said on Wednesday the U.S. government will forgive $10,000 in student loans for millions of debt-saddled former college students
The move could boost support for his fellow Democrats in the November congressional elections
Some economists said it may fuel inflation and some Republicans in the U.S
Congress questioned whether the president had the legal authority to cancel the debt
Debt forgiveness will free up hundreds of billions of dollars for new consumer spending that could be aimed at homebuying and other big-ticket expenses
Biden pledged no high-income households would benefit, addressing a central criticism of the plan
Many Democrats had pushed for Biden to forgive as much as $50,000 per borrower
Republicans mostly opposed student loan forgiveness, calling it unfair because it will disproportionately help people earning higher incomes
White House Press Secretary Karine Jean-Pierre told reporters the administration has legal authority to forgive the debt
American university tuition fees are substantially higher than in most other rich countries, and U.S. consumers carry $1.75 trillion in student loan debt