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CBO: Biden Student Debt Relief Plan to Cost $420 Billion

September 27, 2022

The Congressional Budget Office, Congress’s nonpartisan research arm, estimates that President Biden’s plan to forgive some federal student loans and suspend payments through the end of the year will cost the government about $420 billion.

The CBO released its estimate, which it described as “highly uncertain” because of unpredictability around borrower behavior, in a letter to congressional leaders Monday. It said forgiving repayments would cost the government $400 billion over a 30-year period, while the payment suspension would add another $20 billion.

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