Biden Cancels Student Loan Debt Forgiveness?

Here’s what you need to know…

Several months ago, President Biden announced that he would be erasing anywhere from $10,000 to $20,000 worth of student loan debt for every person in America. Now, while Biden has not canceled his plans to erase student loan debt, the White House has just discovered that it will cost MUCH more to forgive the debt than previously expected.

According to Fox, One key part of Biden’s student loan forgiveness plan was to reduce the monthly bill for certain borrowers, the White House has just calculated that to do this it would cost $361 billion over the next decade to actually do so.

President Biden’s Education Secretary Miguel Cardona stated, “We cannot return to the same broken system we had before the pandemic, when a million borrowers defaulted on their loans a year and snowballing interest left millions owing more than they initially borrowed.”

For Biden to follow through with his plan to lower debt holders monthly bills would cost $361 billion which is twice as much as the net federal budget impact of $138 billion spent by the Department of Education. 

Then if Biden wants to actually follow through with his plan to eliminate anywhere from $10,000 to $20,000, it would cost the government $469 billion.

It’s going to be very pricey for President Biden to do this.