Student debt forgiveness causes monthly deficit to jump 562%

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The Treasury Department said Friday that the federal budget deficit was 562% higher on a monthly basis compared with September 2021, largely reflecting President Joe Biden’s plans to forgive student debt.

Despite the monthly increase, over the fiscal year that ended last month, the federal budget deficit fell $1.4 trillion. It roughly halved in size because of the end of spending tied to coronavirus pandemic relief and higher tax revenues as more Americans found jobs.