Student-loan relief would cost the government $321 billion but allies plan to keep up the pressure for $50K relief, a report says

The Federal Reserve Bank of New York says that student-loan relief by President Joe Biden would cost the government $321 billion.

Biden's allies want the forgiveness of $50,000 per borrower. Representative James Clyburn, a close ally of the president, said in an interview that when a student comes out of college with $150,000 in debt, it cripples the economy.

Clyburn said that forgiveness of student-loan borrowers would boost the economy.

The President said at the White House that he was considering dealing with some student debt reduction.

He said he is not considering a $50,000 debt reduction, but is in the process of taking a hard look at whether there will be additional debt forgiveness.

The Federal Reserve Bank of New York found that it would cost the government $321 billion, eliminate the entire balance for 31.1% of borrowers, and cancel 30.5% of loans delinquent or in default.

The Education Data Initiative states that 43.4 million borrowers have federal student loan debt. A student borrows $30,030 to get a bachelor's degree.

Clyburn said that he thought students were deserving of more than $10,000 in forgiveness because of the high interest and fees on student loans in the past.