New Student Debt Changes Will Cost Half a Trillion Dollars
25th August 2022
President Biden today announced a set of changes to student loans – including cancellation of up to $20,000 for some borrowers – that will cost between $440 billion and $600 billion over the next ten years, with a central estimate of roughly $500 billion. Combined with today’s announcement, the federal government’s actions on student loans since the start of the COVID-19 pandemic have cost roughly $800 billion. Of that amount, roughly $750 billion is due to executive action and regulatory changes made by the Biden Administration.