According to the nonpartisan Center for a Responsible Federal Budget, Joe Biden’s student loan forgiveness plan will cost anywhere between $440 and $600 billion over the next ten years.
The group said the “central estimate” for the cost of the package of reforms announced by Biden Wednesday is roughly $500 billion.
That is a substantial increase from the $329 billion estimate of the Penn Wharton Budget Model issued prior to the release of the details of the plan.
The higher price tag follows from Biden announcing a bigger package of debt relief for student loan borrowers. In addition to the $10,000 of relief expected, Biden said his administration will forgive another $10,000 for borrowers who also received Pell grants to assist with college costs.
The Center for a Responsible Federal Budget (CRFB) estimates that the Biden scheme will cancel about $525 billion of student debt. The cost of this to taxpayers, however, is lower than the amount canceled because some of the debt would have been forgiven under other programs or not paid back because of borrower defaults.