Economists across the USA reviewed President Biden’s plan to cancel student debt this week, with many saying the massive price tag will likely be more than $500 billion over the next decade.
From Fox News:
The Committee for a Responsible Federal Budget settled on a central estimate of approximately $500 billion.
Biden announced up to $20,000 in federal student loan forgiveness on Wednesday. Students who attended college using federal Pell Grants qualify for the $20,000, but those who did not use the program qualify for $10,000 in forgiveness. The handout only applies to borrowers making less than $125,000 per year.
The CRFB says the central estimate for the program’s cost is $500 billion, according to a Thursday report.
More than 43 million Americans have federal student debt, amounting to a total of more than $1.6 trillion. Nearly one third of those owe less than $10,000 and more than half owe less than $20,000, according to the latest federal data.
Critics have argued Biden’s program will contribute to already record-high levels of inflation in the U.S.