Biden student loan handout to cost more than $400 billion: CBO
Tyler Olson
September 26, 2022
CBO estimate doesn’t include costs of ‘income-driven repayment,’ which outside watchdog says will cost extra $120 billion
President Biden’s move to cancel up to $10,000 in student loans for many borrowers — and up to $20,000 for others — will cost more than $400 billion, according to the nonpartisan Congressional Budget Office (CBO).
“CBO estimates that the cost of student loans will increase by about an additional $400 billion in present value as a result of the action canceling up to $10,000 of debt issued on or before June 30, 2022, for borrowers with income below specified limits and an additional $10,000 for such borrowers who also received at least one Pell grant,” the CBO said in a letter released Monday.
The analysis also said Biden’s suspension of payments for other borrowers until the end of the year — made as part of the same action — will hit taxpayers too.
