Biden’s federal student loan forgiveness plan will cost U.S. taxpayers between $440 and $600 billion over the next 10 years, according to the Committee for a Responsible Federal Budget.
The Committee for a Responsible Federal Budget settled on a central estimate of approximately $500 billion.
Biden announced up to $20,000 in federal student loan forgiveness on Wednesday. Students who attended college using federal Pell Grants qualify for the $20,000, but those who did not use the program qualify for $10,000 in forgiveness. The handout only applies to borrowers making less than $125,000 per year.
The CRFB says the central estimate for the program’s cost is $500 billion, according to a Thursday report.