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Biden's student loan forgiveness expected to cost around $400 billion, budget office estimates

Joe Biden
Posted at 2:06 PM, Sep 26, 2022

President Joe Biden's plan to try and relieve student loan borrowers of a signification portion of their debt, connected to a repeated campaign promise, is expected to cost upwards of $400 billion, according to the nonpartisan Congressional Budget Office (CBO).

The CBO said the expected cost could rise after a pause on studentloan paymentswas extended late last year.

The new Monday report could reinvigorate a debate between Biden's supporters and those against out-of-control government spending as midterm voting quickly approaches.

President Biden announced a plan in August to forgive $10,000 in debt for borrowers making less than $125,000 annually, or in households making less than $250,000 annually. That relief goes up to $20,000 for those who received Pell grants for low-income families.

The New York Times reported that more than 60 percent of student loan borrowers had received federal Pell grants, with the majority part of families who make less than $30,000 a year.