Dueling Costs on Biden’s Student Loan Forgiveness Plan
There’s no such thing as a free lunch. But how about free college?
Some 43 million Americans hold student loans, with a total debt of more than $1.6 trillion. President Biden plans to forgive up to $20,000 per borrower, which would cancel $430 billion in debt.
Is this the best use of taxpayer dollars? Different analyses offer different numbers, but they all point to the same answer: No.
- The Congressional Budget Office says the plan would cost at least $400 billion over 30 years.
- The Committee for a Responsible Federal Budget says it would cost up to $600 billion over 10 years.
- The University of Pennsylvania Penn Wharton model says it would cost $605 billion over 10 years.
“Even modest student loan forgiveness proposals are staggeringly expensive and use federal spending that could advance other goals,” writes Brookings Institution senior fellow Adam Looney, a veteran of President Barack Obama’s Council of Economic Advisers. “There are better ways to spend that money that would better achieve progressive goals.”
Jason Furman, who headed the National Economic Council under Obama, agrees: “Pouring roughly half trillion dollars of gasoline on the inflationary fire that is already burning is reckless.”
What do you think, please take our poll on student loan relief nolabels.org/poll