President Joe Biden’s decision to partially erase America’s colossal student debt will cost the federal state $400 billion, the Congressional Budget Office estimated in a report released Monday.
This new estimate, requested by elected conservatives and issued by an official and apolitical body, should add fuel to the fire of the lively controversy between Democrats and Republicans on the subject. Republicans accuse President Biden of financial waste with this measure that he announced on August 24, believing that public money could be used much more efficiently.
Between $10,000 and $20,000 of debt erased
Returning to a campaign promise, Joe Biden pledged to erase $10,000 of debt for people who did not benefit from a federal scholarship for their university studies, and $20,000 for those who, with more modest means, have received a grant. This measure, which affects people who earn less than 125,000 dollars a year, continues to generate a lively debate in a country where a year of university can cost tens of thousands of dollars.
The estimate of the cost of the measure is fueling an important technical debate between experts and economists, in particular due to the uncertainties linked to the repayments of the loans already made by the former students affected by this cancellation of the debt.
Source: BFM TV
