Biden college debt relief plan could cost $24B per year

Biden's plan to cancel student loan debt

Biden’s student loan plan could cost $24B per year, White House press secretary estimates – CNN.

The White House said Thursday that President Bidens student loan forgiveness plan would cost around $24 billion per year, assuming 75% of people took the program.

At an early-Thursday press briefing, Jean-Pierre continued to insist that the plan to cancel student loan debt would fully pay for itself. She did not offer a price estimate for the plan, however.

The spokeswoman claimed that the administration did not think this initiative would add to the deficit. However, Bharat Ramamurti, the National Economic Council deputy director said that $2 billion a month was still being paid by borrowers during the payback pause over the last two years.  Prior, the Treasury was receiving on average $6 billion per month.

The White House responded to criticism of its student loan forgiveness plans on Twitter, pointing out that several Republican lawmakers had their loans forgiven under the Paycheck Protection Program.

Asked if the administration would release cost estimates, Jean-Pierre said the Department of Education would be taking the lead and that Biden wanted to do it in a fiscally balanced way.

Ramamoorthy said it is hard to put a number on the relief because it depends on how many borrowers signed up and on the default rates.

For more coverage on this story, check the following additional news sources:

  1. Biden student loan plan could cost $24B per year, White House press secretary estimates  CNN
  2. The frustrating truth about who is excluded from college debt relief  CNN
  3. Student Loan Forgiveness: Biden Plan to Cancel Debt Is a Costly Mistake  Bloomberg
  4. Opinion | Biden’s Tuition Gambit Could (And Should) End Up in Court  POLITICO
  5. Letters: Universal free school lunches are ending. But do student loans get a pass?  Chicago Tribune
John Nightbridge is a veteran reporter, researcher, and economic policy major from UCLA. Passionate about world issues and potential ways to solve them is a significant focus of his work. Writing freelance and reading the news are John's passions at work. Outside of work, it's all about sky diving, surfing, and stock market modeling.