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CBO: Biden’s Loan Forgiveness Plan Costs $420 BILLION

  • Phillip Swagel, director of the Congressional Budget Office, recently wrote a letter to the ranking Republicans on the House and Senate education committees in response to their request for a cost estimate for President Biden’s unilateral student-loan forgiveness plan.
  • Coined by the Wall Street Journal Editorial Board writers as the CBO’s “horrifying political math,” the current cost estimate sums up to $420 billion.
  • This includes $20 billion from Biden’s unilateral 3-month extension of the moratorium on student loan payments and another $400 billion that will be needed to cover his cancellation of up to $10,000 in debt issued by June 30 this year, as well as the $10,000 for Pell grant recipients.
  • “This is an unprecedented act of peacetime fiscal recklessness,” the Wall Street Journal Editorial Board wrote.
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