President Biden’s announcement this week that he would cancel chunks of student loan debt stands to have a major impact for many of the 45 million Americans who owe $1.6 trillion for having gone to college.

Who will benefit from the plan, what will the cost be to the taxpayer and the economy, and, ultimately, could the White House have done more?

Guest: Stacy Cowley, a finance reporter for The New York Times.

Background reading: 

• The plan for student loan forgiveness comes after months of deliberations in the White House over fairness and concerns that it could exacerbate inflation before the midterm elections.
• The move has kicked off heated fiscal debate and raised the possibility of opening a deep political rift.
• Here’s what you need to know about Mr. Biden’s proposal.

For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday. 

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