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Millions of Americans get their $10,000 in student loans forgiven by President Joe Biden.

President Joe Biden said on Wednesday that the U.S. government will forgive $10,000 in student loans for millions of students who went to college but now have a lot of debt.

Some economists say it might drive inflation, and some Republicans in Congress dispute whether the president has the legal power to cancel the debt.

Economists say that getting rid of debt will free up hundreds of billions of dollars for new consumer spending, which could be used to buy homes and pay for other big-ticket items. This will make it harder for the country to fight inflation.

Biden stated the moves are for "working and middle class families struck hard by the pandemic." He promised high-income households wouldn't profit, addressing a major objection.

"I will never apologise for aiding working Americans and the middle class, especially to the same folks who voted for a $2 trillion tax reduction that mostly benefited the wealthy and corporations," Biden added.

Since the COVID-19 outbreak began, borrower balances have been frozen, and most federal student loans don't need to be paid back until March 2020. Many Democrats wanted Biden to cancel as much as $50,000 of each borrower's debt.

Republicans opposed student loan forgiveness, saying it unfairly helps higher-income people.

"President Biden's student loan socialism is a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt," Senate Minority Leader Mitch McConnell said Wednesday.

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