WASHINGTON, D.C. — As millions of federal student loan borrowers celebrate the newly announced student loan debt relief, questions remain about the overall cost.
President Biden announced the plan Wednesday that allows federal student loan borrowers who make less than $125,000 a year to get up to $10,000 in debt relief.
People with Pell grants are eligible for relief up to $20,000.
The White House has said the overall price tag is yet to be determined because it will depend on how many people take advantage of the action.
White House Press Secretary Karine Jean-Pierre was asked multiple times Thursday about the cost and would not provide specific estimates.
“It will depend on how many borrowers actually take up this opportunity,” said Jean-Pierre. “We just don’t have a number to share.”
Opponents of the plan argue it will make inflation worse.
Our Washington News Bureau spoke with the National Taxpayers Union Foundation, which is a conservative leaning group that focuses on the impact policies have on taxpayers.
The group estimates the student loan debt relief will cost around $400 billion.
“That $400 billion is now a gap in the federal budget that the federal government, Congress and the executive branch will have to account for with either spending cuts elsewhere or tax increases,” said Andrew Lautz, Director of Federal Policy for the National Taxpayers Union Foundation.
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