White House Should Produce Debt Cancellation Cost EstimatesCommittee for a Responsible Federal Budget
Two days after announcing executive action to cancel large amounts of student debt, the White House has failed to produce either a cost estimate or a proposal for how it would be paid for. The White House has said it is unable to provide a cost estimate due to uncertainty, and has suggested it could be paid for by restarting student loan payments in January, even though loan payments were previously scheduled to restart next month.
The Committee for a Responsible Federal Budget estimates that the student debt policies announced on Wednesday by President Biden will cost between $440 billion and $600 billion, with a central estimate of roughly $500 billion, with the cancellation component alone costing roughly $360 billion. The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget: