Biden's student debt relief plan could cost the government $400 billion

biden student loan photo
US President Joe Biden and Education Secretary Miguel Cardona (R)
(Image credit: OLIVIER DOULIERY / Contributor/Getty Images)

The Biden administration's plan to cancel student loan debt for millions of Americans will cost the government about $400 billion, per a new estimate by the nonpartisan Congressional Budget Office. The letter, addressed to Congress members, also revealed that the White House's plan to extend the current pause on student loan payments temporarily will cost around $20 billion.

In an interview that preceded the release of the new estimates, Marc Goldwein, senior vice president for policy with the Committee for a Responsible Federal Budget, told the Post, "The president announced possibly the most expensive executive action in history without a score, and we're now seeing just how expensive this policy is going to be."

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Around 8 million qualifying borrowers will automatically have their loans forgiven without having to fill out an application, according to the Education Department. All other borrowers who qualify must apply in early October when the agency releases the form.

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Theara Coleman, The Week US

Theara Coleman has worked as a staff writer at The Week since September 2022. She frequently writes about technology, education, literature and general news. She was previously a contributing writer and assistant editor at Honeysuckle Magazine, where she covered racial politics and cannabis industry news.