Bad news for Joe.
President Biden’s student loan cancellation plan, which would wipe out up to $20,000 for some low-to-middle income borrowers, may actually cost $400 billion dollars according to the Congressional Budget Office. The White House previously estimated it would cost between $2-300 Billion.
According to CNN, no student loans have been forgiven yet and the Department of Education plans to release an application for the program in October.
The CBO performs nonpartisan analysis for Congress and cautioned in the report that the estimates are “highly uncertain.”
Expected to release its own estimate of Biden’s plan in the coming weeks, the White House previously said the debt forgiveness plan would decrease cash flow by approximately $24 billion the first year.
Under the president’s plan, individuals who made less than $125,000 in 2020 or 2021 and married couples or heads or households who made less than $250,000 per year in those years are eligible to have up to $10,000 of their federal student loans erased.
“Today’s CBO estimate makes clear that millions of middle-class Americans have more breathing room thanks to President Biden’s historic decision to cancel student debt,” Democrat Senators Chuck Schumer (NY) and Elizabeth Warren (MA) said.
Republicans didn’t exactly agree with that sentiment.
“CBO’s $400 billion cost estimate shows this administration has lost all sense of fiscal responsibility,” North Carolina Rep. Virginia Foxx, said in a statement Monday. Foxx serves as the Republican leader on the House Education and Labor Committee.
More over at Newsmax: