Student Loan Cancellation Will Cost More Than $400 Billion: CBO

The Congressional Budget Office on Monday released an official cost estimate for President Biden’s student loan cancellation, putting the cost at more than $400 billion.
WASHINGTON, DC - SEPTEMBER 07: U.S. President Joe Biden delivers remarks at a ceremony to unveil the official White House portraits of former President Barack Obama and former First Lady Michelle Obama at the White House on September 7, 2022 in Washington, DC. The Obama’s portraits will be the first official portraits added to the White House Collection since President Obama held an unveiling ceremony for George W. Bush and Laura Bush in 2012. (Photo by Kevin Dietsch/Getty Images)

At a glance

  • “As of June 30, 2022, 43 million borrowers held $1.6 trillion in federal student loans,” the nonpartisan, Capitol Hill office said. “About $430 billion of that debt will be canceled.”
  • Other cost-estimating groups have projected similar estimated on the cost of Biden’s student loan cancellation order.
  • Supporters of the plan say it will bring much-need relief to those mired in student loan debt.
  • Fiscal conservatives continue to criticize Biden’s decision.
  • “CBO’s new estimate confirms the outrageous cost of the White House plan to cancel large amounts of student debt, by executive order, to nearly all borrowers almost regardless of need,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget “ The Biden administration’s failure to release their own cost estimate should have been a red flag.”

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