Cost for Taxpayers Revealed if Biden Were to Forgive $10K in Student Debt Relief

President Joe Biden is reportedly set to forgive thousands in student loan debt and an analysis revealed how much it would cost taxpayers.

On Tuesday, Fox News reported that Biden is expected to forgive $10,000 in student loans for borrowers who make less than $125,000 per year.

According to an analysis from the University of Pennsylvania’s Wharton School, the plan will cost taxpayers $300 billion.

“This cost increases to $330 billion if the program is continued over the standard 10-year budget window. Eliminating the borrower income limit threshold produces a 10-year cost of $344 billion,” the analysis adds.

The analysis also explains, “Between 69 and 73 percent of the debt forgiven accrues to households in the top 60 percent of the income distribution.”

Additionally, the analysis suggested that if the loan forgiveness is ongoing, “Students might eventually reorganize their financing toward additional borrowing.”

The analysis continues, “Moreover, more students might choose to attend qualifying 🎓Education providers, including students who might otherwise have a harder time with repayment. The inclusion of these two effects could, to some extent, make the program a bit more progressive while increasing budgetary costs.”

Another effect of the program could be that “some of the benefit from debt forgiveness might be captured by colleges themselves in the form of higher prices (both tuition and net).”