According to the Wharton School, “debt cancellation alone will cost up to $519 billion, with about 75% of the benefit accruing to households making $88,000 or less.”
The school advised, “depending on future IDR program details to be released and potential behavioral (i.e., ‘non-static’) changes, total plan costs could exceed $1 trillion.” Before Wharton’s astronomical price tag was shared, people including former President Barack Obama’s top economic advisor Larry Summers spoke on Biden’s bailout.
Summers stated, “Every dollar spent on student loan relief is a dollar that could have gone to support those who don’t get the opportunity to go to college.”
