The cost of President Joe Biden’s student loan cancellation plan continues to rise every month.
According to the Congressional Budget Office (CBO), the president’s plan to forgive between $10,000 and $20,000 in federal student loans will now cost approximately $400 billion.
Moreover, the CBO projects that the White House’s idea to pause student loan payments from September to December will total $20 billion.
Many other estimates suggest a higher price tag, including the Committee for a Responsible Federal Budget, which forecasts that it will cost more than $120 billion.
“The cost of outstanding student loans will increase by $20 billion because an action suspended payments, interest accrual, and involuntary collections from September 2022 to December 2022, the Congressional Budget Office estimates. That present-value cost is relative to the amounts in CBO’s May 2022 baseline projections,” the non-partisan budget watchdog stated.
“After accounting for those suspensions, CBO estimates that the cost of student loans will increase by about an additional $400 billion in present value as a result of the action canceling up to $10,000 of debt issued on or before June 30, 2022, for borrowers with income below specified limits and an additional $10,000 for such borrowers who also received at least one Pell grant.”
Who thought anything differently?
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