Home » World News » White House says student loan handout to cost $24B per year, applications to be available in October
White House says student loan handout to cost $24B per year, applications to be available in October
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The White House on Friday said the student loan forgiveness program introduced by President Biden this week will cost roughly $24 billion a year over the next 10 years.
That's far less than what independent researchers say the plan could cost. The Committee for a Responsible Federal Budget put the estimated cost at $500 million, and the University of Pennsylvania's Wharton School of Business said the total price tag of the plan could top $1 trillion.
The Wednesday announcement that Americans who earn $125,000 a year or less could see a reduction in student loan payments was met with pushback from members of the GOP and questions over how much the program could cost not only the government but taxpayers.
"Let's put that $24 billion in context," Deputy Director of the National Economic Policy Bharat Ramamurti told reporters from the White House on Friday. "That represents 1.5 percent of the deficit reduction that we are projecting for this fiscal year before the announcement."