Cost of canceling student debt: $400 billion, agency says

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Cost of canceling student debt: $400 billion, agency says
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Cost of canceling student debt: $400 billion over a decade, agency says

The CBO noted that its estimates"are highly uncertain," given that they depend on the amount that borrowers would have repaid if the debt relief plan hadn't been created, as well as the amount that borrowers will repay after all or some of their loans are forgiven.

Under the Biden administration's plan, extra relief is provided for people who received Pell Grants, which are geared to low-income students. These borrowers will receive up to $20,000 in loan forgiveness, double the amount of other borrowers.

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