Biden’s student loan cancellation plan to cost $400B, Congressional Budget Office estimates

President Joe Biden's plan to forgive $10,000 in federal student debt for most borrowers will cost the government about $400 billion, the nonpartisan Congressional Budget Office said in an estimate released Monday.

The CBO’s evaluation of the administration's policy said the price tag is "a result of the action canceling up to $10,000 of debt issued on or before June 30, 2022."

The president's plan covers borrowers with income below specified limits and an additional $10,000 forgiven for those who also received at least one Pell grant, CBO Director Phillip Swagel said.