Biden's student debt forgiveness plan may cost taxpayers an average of $2,000, some policy experts say.
"It will raise the costs or budget impact of the policy overall," Lautz said.
Notably, the costs would not be spread evenly across the income spectrum, according to the National Taxpayers Union's estimates. Low-income taxpayers earning between $1 to $50,000 would have an average additional cost per taxpayer of $190. That would increase to about $1,040 for those with adjusted gross incomes between $50,000 and $75,000; $1,774 for those between $75,000 and $100,000; $3,791 for incomes of $100,000 to $200,000.
Student loan borrowers gather near The White House to tell President Biden to cancel student debt - all of it with no means-testing on May 12, 2020 in Washington, DC.debt cancellation alone will cost up to $519 billion. Loan forbearance will cost another $16 billion, the research found, while the new income-driven repayment could cost $70 billion.
Canceling student debt will boost near-term inflation more than the Inflation Reduction Act that was recently enacted would reduce it, the Committee for a Responsible Federal Budget found in a. Moreover, it found that canceling student debt would also undermine the deficit reductions in that law recently passed by Democrats.