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CBO says Biden's student loan cancellation plan could cost $400 billion | CNN Politics
WashingtonCNN —
President Joe Biden’s plan to cancel up to $20,000 in federal student loan debt for low- and middle-income borrowers could cost $400 billion, according to a Congressional Budget Office report released Monday.
Biden announced the forgiveness plan in August, after facing mounting pressure from progressives to broadly cancel some student loan debt.
The Department of Education plans to release an application for the program in October. No student debt has been canceled yet.
The CBO, which conducts nonpartisan analysis for Congress, warned in the report that the estimates are “highly uncertain.”
The estimate relies on a number of assumptions, including how many eligible borrowers will apply, as well as what portion of the outstanding federal student loan debt may not have been repaid anyway over the lifetime of the loans due to other existing forgiveness programs, for example. Those projections depend in part on future economic conditions, the CBO said.
WashingtonCNN —
President Joe Biden’s plan to cancel up to $20,000 in federal student loan debt for low- and middle-income borrowers could cost $400 billion, according to a Congressional Budget Office report released Monday.
Biden announced the forgiveness plan in August, after facing mounting pressure from progressives to broadly cancel some student loan debt.
The Department of Education plans to release an application for the program in October. No student debt has been canceled yet.
The CBO, which conducts nonpartisan analysis for Congress, warned in the report that the estimates are “highly uncertain.”
The estimate relies on a number of assumptions, including how many eligible borrowers will apply, as well as what portion of the outstanding federal student loan debt may not have been repaid anyway over the lifetime of the loans due to other existing forgiveness programs, for example. Those projections depend in part on future economic conditions, the CBO said.