All of Biden’s previous debt cancellation initiatives, according to the independent Committee for a Responsible Federal Budget, would cost between $870 billion and $1.4 trillion.
A study from the organization states that “that is more than all federal spending on higher education over the nation’s entire history.” “The vast majority of this debt cancellation was put in place through executive actions under President Biden.”
It has already eliminated nearly $620 billion in debt, according to the organization.
“Our numbers differ somewhat from our previous estimates, mainly because the President’s plan to cancel $10,000 to $20,000 of student debt per person was ruled illegal by the Supreme Court and the cost of his newest plan remains uncertain,” the research said.
Based on their estimate, which ranged from $870 billion to $1.4 trillion, the Committee for a Responsible Federal Budget concluded that it was almost the same as all of the anticipated education appropriations for the next ten years, or around $935 billion from 2025 to 2034. It calculated that providing universal access to affordable child care and pre-K would cost $750 billion.
“As we’ve explained before, most of these student debt cancellation policies have not only been costly, but also inflationary, poorly targeted, counter to the mission of lowering college costs, and not financially justified,” the paper states. “Instead of continuing down this road, lawmakers should work together on reforms that actually fix the student loan program and address the cost and quality of higher education.”