Student debt relief package could lead to deflation, U.S. official says

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WASHINGTON (Reuters) – A plan unveiled by the Biden administraton to forgive $10,000 in federal student debt and defer payments through year end could have a neutral impact on consumer prices or even be deflationary, a senior administraton official said on Wednesday.

Speaking on a call previewing President Joe Biden’s remarks about the program, officials also said the program could benefit 43 million student loan borrowers.