Congressional Budget Office Announces Cost of Biden Student Loan Handout

President Biden's student loan forgiveness of $10,000 for many borrowers and $20,000 for others will cost more than $400 billion, according to the nonpartisan Congressional Budget Office (CBO), according to a report from Fox News.

"CBO estimates that the cost of student loans will increase by about an additional $400 billion in present value as a result of the action canceling up to $10,000 of debt issued on or before June 30, 2022, for borrowers with income below specified limits and an additional $10,000 for such borrowers who also received at least one Pell grant," the CBO said in a letter released Monday.

CBO estimates that the cost of outstanding student loans to the federal government will increase by about $400 billion because of an executive action canceling some debt. https://t.co/FgEHBn2XP6

— U.S. CBO (@USCBO) September 26, 2022

The analysis also pointed out that the suspensions of payments until the end of the year, which was also part of the forgiveness plan, will also hit taxpayers in the pocket.

"The cost of outstanding student loans will increase by $20 billion because an action suspended payments, interest accrual, and involuntary collections from September 2022 to December 2022," the CBO wrote.

Yearly costs of the student loan handout will peak over the next decade but will continue over the next 30 years.

Biden student loan handout to cost more than $400 billion: CBO https://t.co/j0QpJLzz9A

— Fox News (@FoxNews) September 26, 2022

Senate Health, Education, Labor and Pensions Committee Ranking Member Richard Burr, R-N.C., and House Education and Labor Committee Ranking Member Virginia Foxx, R-N.C., requested the analysis of the handout.

"CBO’s $400 billion cost estimate shows this administration has lost all sense of fiscal responsibility," Foxx said Monday. "Rather than working with Congress to bring down college costs, President Biden has opted to bury the American people under our unsustainable debt."

Senator Majority Leader Chuck Schumer (D-NY) and Senator Elizabeth Warren (D-MA) claim that these figures prove the forgiveness plan is helping America.

"Today’s CBO estimate makes clear that millions of middle class Americans have more breathing room thanks to President Biden’s historic decision to cancel student debt," they said. "President Biden delivered transformative middle class relief by cancelling student debt for working people who need it most — nearly 90% of relief dollars will go to those earning less than $75,000 a year."