Biden Student Debt Plan Cost Exceeds $400 Billion, CBO Says (1)

President Joe Biden’s decision to forgive some federal student debt will cost the US Treasury at least $400 billion, the Congressional Budget Office estimated.

Biden in August announced student debt relief of $10,000 per borrower, subject to income caps of $125,000 per individual and $250,000 per household. An additional $10,000 can be forgiven for Pell Grant recipients. The CBO says that the move will reduce the present value of outstanding loans by $400 billion based on 30 years of reduced future cash inflows.

The non-partisan budget agency said Biden’s suspension of student debt payments through the end of ...