Biden’s Student Debt Relief Plan to Cost $400 Billion, Numbers Likely to Fuel Debate Between Dems, GOP
News 18US President Joe Biden’s plan to forgive part of the country’s massive student debt burden is estimated to cost the government $400 billion, the Congressional Budget Office said Monday. “CBO estimates that the cost of student loans will increase by about an additional $400 billion in present value” as a result of the debt forgiveness, it said. But a White House official noted, “CBO called its own estimate ‘highly uncertain.’ We agree.” Republicans accuse Biden of wasting money on the measure, arguing that public funds could be used more effectively. Estimating the plan’s cost is fueling a major technical debate among experts and economists, particularly because it is unclear regarding loan repayments already made by people who benefit from the debt forgiveness.