Biden’s student debt forgiveness plan may cost taxpayers an average of $2,000, some policy experts say

The Biden administration has grappled with ending the pause on student loan payments as the economy’s recovery from pandemic lows continues.

Policy experts were quick to sound an alarm after President Joe Biden announced a plan to cancel up to $10,000 in federal student loans for people with low incomes.

Biden will reduce the amount of money given to recipients of the grants.

The plan will cost taxpayers and do nothing to fix the affordability issues that plague higher education in the U.S., according to experts.

Andrew Lautz is the director of federal policy at the National Taxpayers Union.

It has consequences for consumers. There are consequences for taxpayers.

The Biden plan could cost the average taxpayer more than $2,000 according to an estimate published by Lautz.

It is assumed that policymakers would have to make up for the total cost of forgiveness through tax increases, spending cuts, borrowing or a combination of those strategies.

The Committee for a Responsible Federal Budget found that canceling student debt would boost inflation more than the inflation reduction act would reduce it. The law recently passed by Democrats would be undermined if student debt was canceled.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said after Biden unveiled the plan that she thought it would surprise people.

The debt will be erased for millions of student loan borrowers, but the government will have to borrow to pay for it.

MacGuineas said this isn't paid for. One kind of borrowing is being shifted to another.

Both Lautz and MacGuineas said that Biden's plan doesn't get to the root cause of why student borrowers end up with so much debt.

MacGuineas said that higher education is one of the most difficult problems to solve because of how universities and graduate schools are financed. This doesn't do anything