Who will pay if Biden cancels student debt?
Lawmakers are continually pressuring President Biden to cancel student loan debt. Whether it’s the $10,000 per federal borrower he promised on the campaign trail or a more aggressive $50,000 per borrower proposed by progressives, someone would have to foot the bill.
Nearly 43 million borrowers collectively owe around $1.7 trillion in student loan debt and haven’t had to make a single monthly payment over the last two years thanks to a pandemic-inspired moratorium on repayments. The moratorium is set to expire on May 1, and lawmakers are seizing the moment to urge Biden to again extend it or commit to cancelling student loans altogether — especially with midterm elections looming.
Cancelling $10,000 per borrower would cost the federal government around $3.73 billion, while the estimated price of eliminating $50,000 per borrower would tally near $1 trillion.
Taxpayers already bear the brunt of student loan defaults, and analysts note that rising debt would exacerbate their burden. A report from the Bipartisan Policy Center suggests the cost to taxpayers will rise alongside an increase of “generous repayment and forgiveness plans.”
).If I cant get a progressive democrat let us all suffer under republicans.
