In August, President Joe Biden announced his plan for student loan forgiveness — the largest program of student debt forgiveness ever rolled out. Now the cost of the program has been announced.
In a preview of the upcoming American Family Survey, the Deseret News reported that most Americans support student loan forgiveness for individuals who have need.
How much will student loan forgiveness cost?
- According to NPR, the program is expected to cost $400 billion over the course of 30 years.
- NPR also reported that the pause on additional student loan payments from September to December 2022 cost $20 billion.
- CNN reported that the estimated cost for this program is highly uncertain.
- According to CNN, White House spokesperson Abdullah Hasan said, “The Biden-Harris administration’s student debt relief plan provides breathing room to tens of millions of working families. It’s a stark contrast to the Trump tax bill, which ballooned the deficit by nearly $2 trillion and provided the vast majority of benefits to big corporations and the wealthiest individuals.”
Lawsuit filed from Pacific Legal Foundation
Pacific Legal filed a lawsuit on Tuesday, that was published by Reason. According to Reason, “The lawsuit’s plaintiff is Frank Garrison, who’s also an attorney at PLF. Garrison borrowed federal student loans to pay for law school, but according to him, Biden’s debt forgiveness plan will actually subject him to a financial penalty in the form of a state tax.”
USA Today reported that the law firm filed for a temporary restraining hold on the student loan forgiveness program.
The big weakness of this lawsuit is the strength of the statutory ground on which Biden's plan stands, both under the HEROES Act and under the Health & Education Act. But the plaintiff just might have standing to bring the suit even though it's a stretch.https://t.co/gCjC0738ro
— Laurence Tribe (@tribelaw) September 27, 2022