White House analysis says Biden’s student loan debt cancellation plan costs $379 trillion



CNN

President Joe Biden’s order to cancel the student loan debt of millions of Americans will cost an average of $30 trillion annually over the next decade and $379 billion over the course of the program, according to cost estimates from the Biden administration.

The administration’s analysis of the overall cost is roughly consistent with a Congressional Budget Office economic analysis released this week that estimated the cost of the program at roughly $400 billion. The differences were mainly the differences in economic forecasts and the estimated number of borrowers who would use the program.

The CBO analysis sparked an intense new round in a weeks-long battle between the White House and congressional Republicans over the size of the measure and how to score it. The White House estimate of the cost of the program would be $305 trillion over 10 years.

White House officials have strongly defended the merits of the proposal, which is structured in a way that would direct nearly 90 percent of debt relief to people making less than $75,000 a year.

“Every dollar we record as a cost to the federal government is actually a benefit to low- and moderate-income families,” said a senior administration official. “We talk about the costs to the federal government, but the reality is that millions of people will be able to have a little more breathing room in their lives every year.”

The cost estimates released in recent weeks by the Office of Management and Budget and the Department of Education mark the largest analysis of Biden’s decision in the past month to take action that could allow him to ease student loans. 40 crore as loan.

But they also come as the White House seeks to fend off sharp Republican critics — and a handful of Democratic objections — to the overall cost of the program and lawsuits seeking to repeal it entirely.

The administration’s estimate of an average of $30 trillion in annual costs over the next decade is part of an analysis of reduced cash flow in government that administration officials have pushed as a more accurate way to estimate the near-term impact. The overall cost of the action to the government.