Biden’s Student Debt Forgiveness Plan Will Cost $400 Billion, CBO Finds

President Joe Biden’s plan to forgive student loan debt for many borrowers will cost roughly $400 billion, according to a Congressional Budget Office estimate released on Monday, rekindling a debate over the cost of student debt forgiveness and whether the plan will accelerate inflation.

The CBO estimates Biden's student loan debt forgiveness program will cost $400 billion.

The CBO also estimated Biden’s decision to pause student loan payments through the end of the year—extending a pause that began in 2020—will cost another $20 billion.

The estimates come one month after Biden offered to forgive $10,000 for all federal student loan borrowers who earn less than $125,000, and $20,000 for borrowers who received federal Pell grants offered to low-income students.