University of Pennsylvania’s Wharton School of Business has estimated the price tag of Joe Biden’s student debt plan could be more than $1 trillion over the next decade.
The Hill reports:
The study found the plan would cost $605 billion over the next decade under strict assumptions, but the price tag in other conditions could grow to more than $1 trillion, a scenario the researchers said “requires further study.”
Biden on Wednesday announced the long-awaited plan, which cancels thousands of dollars in debt for many borrowers, extends a payment pause until the end of the year and caps monthly payments at a percentage of borrowers’ incomes.
The Biden administration had faced pressure from many Democrats to take executive action on student debt, but the announcement has also been met with criticism from Republicans and some moderate Democrats who expressed worry over the plan’s cost and its impact on already high inflation rates.
When asked at a press briefing on Thursday, White House officials declined to give a price tag for the decision, saying “it depends” on how many borrowers take up the offer.