If President Joe Biden’s student debt cancellation scheme were to be implemented, it would cost every single American taxpayer in excess of $2,500, according to an estimate by the National Taxpayers Union Foundation (NTUF).
Biden’s plan seeks to eliminate $10,000 worth of debt for each federal student debtholder. For borrowers who received federal Pell Grants, $20,000 worth of debt would be eliminated. NTUF calculates that such a move will add $386–405 billion in net costs to taxpayers based on conservative assumptions, it said in a blog post on Aug. 25. This would mean that each American taxpayer would bear an extra burden of $2,503.22, up by more than $400 from an earlier estimate.
