Biden’s Student Loan Cancellations Estimated to Cost Over $400 Billion: CBO

Biden’s Student Loan Cancellations Estimated to Cost Over $400 Billion: CBO
President Joe Biden speaks in the East Room of the White House in Washington, on Sept. 15, 2022. Anna Moneymaker/Getty Images
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The Biden administration’s plan to cancel student debt is estimated by the Congressional Budget Office (CBO) to cost the U.S. federal government over $400 billion over the next 30 years.

Biden’s plan, announced in August, involves providing up to $10,000 in debt relief to borrowers who earn less than $125,000 per year, or $20,000 in debt relief to Pell Grant recipients who meet similar income standards. An application to receive the benefit is expected in early October.
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