Factoring in COVID student loan payment moratorium, Congress has spent “between $700-$900 billion on student debt cancellation and relief since the start of the pandemic,” estimates Committee for a Responsible Federal Budget.
A Wharton study estimates that Biden’s plan will cost about $300 billion in taxpayer funds. The Committee for a Responsible Federal Budget put the estimated cost of the cancellation plan between $400 and $600 billion.
Larry Summers, an economist who served as director of the National Economic Council under former President Obama said, “Student loan relief is not free. It would be paid for. Part of it would be paid for by the 87 percent of Americans who do not benefit but lose out from inflation.”