Tulane economist available to discuss impact of Biden's student loan relief plan

Tulane University economist Douglas Harris is available to speak about the impact of President Biden's plan to cancel $10,000 of student debt for low- to middle-income borrowers.

The administration announced a three-part plan to provide targeted debt relief as part of a larger effort to address college costs and make the student loan system more manageable for working families.

"This is on top of $30 billion in other loan cancellation from the Biden Administration that has addressed more targeted issues such as fraud and abuse by for-profit colleges," said Harris,  the Schlieder Foundation Chair in Public Education at Tulane University.

Harris said:

There has been some debate about whether this initiative might increase inflation in the broader economy, but there is little reason to expect that. The proposal will not reduce inflation, but do little to make it worse either. States and colleges also have a role to play here in keeping the debt problem under control. One reason student debt has risen is that states have cut their support to public colleges and universities, and the federal Pell grant has not kept up with inflation. The initiative is not designed to solve the underlying problem of college affordability. The Biden Administration has made other proposals to address that, such as free community college, but these proposals have been rejected by Congress. As a result, student debt will build back up again after this cancellation. To schedule an interview with Harris, click the following link or email pr@tulane.edu.