President Biden’s new plan to forgive some or all student loans for 26 million Americans would cost about $84 billion over 10 years, according to economists at the Penn Wharton Budget Model, a nonpartisan research organization at the Wharton School of the University of Pennsylvania.
When combined with the administration’s income-driven repayment plan, known as Saving On a Valuable Education, the total cost would be $559 billion.
The administration, which this week previewed its plan to provide debt relief for borrowers who fall into five discrete categories, has not yet released a cost estimate. More details about the expected cost should be included in the proposed regulatory changes that will be published in coming weeks.
