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  • Writer's pictureCapitol Times

Education Department estimates $379 billion in student debt cancellation

Photo Credit: Gage Skidmore

According to the U.S. Department of Education, the Biden administration's student debt cancellation program will cost $379 billion over the next 10 years, or $30 billion a year.

"Highly uncertain assumptions are used to estimate future economic conditions and participation rates," the department noted.

“As a result of Student Debt Relief, millions of borrowers will no longer have to make repayments on their loans and millions more will be able to substantially reduce their repayments,” the Department of Education announced, adding it estimates that “over the next 10 years, the program will cost on average $30 billion annually.”

“The ten-year cost in terms of reduced cash flows into the government will be roughly $305 billion,” it noted.

Those earning less than $125,000 per year will receive $10k in debt relief, and Pell Grant recipients earning the same income will receive $20k. Early October will be the deadline for applying for the benefit.

30 September 2022

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