Biden’s student loan forgiveness plan could cost $400 billion, CBO says

President Biden’s plan to write off student debt for some borrowers will cost the federal government an additional $400 billion, according to the nonpartisan Congressional Budget Office.

The estimates released Monday are the latest to put a price tag on the administration’s student loan modification plans, in the absence of a detailed account from the White House. A range of analyst estimates reflect the considerable complexity of projecting the performance of the federal government’s student loan portfolio and raise questions about how the measures will ultimately affect the federal budget.