Yearly costs from the student loan handout are likely to peak later this decade, according to the CBO analysis, and will continue to impact the deficit "over roughly the next 30 years."
Senate Health, Education, Labor and Pensions Committee Ranking Member Richard Burr, R-N.C., and House Education and Labor Committee Ranking Member Virginia Foxx, R-N.C., requested the analysis of the handout.
"CBO’s $400 billion cost estimate shows this administration has lost all sense of fiscal responsibility," Foxx said Monday. "Rather than working with Congress to bring down college costs, President Biden has opted to bury the American people under our unsustainable debt."
Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Elizabeth Warren, D-Mass., two of the loudest advocates for Biden's student loan forgiveness in Congress, said the CBO estimate only proves the policy is helping Americans.
"Today’s CBO estimate makes clear that millions of middle class Americans have more breathing room thanks to President Biden’s historic decision to cancel student debt," they said. "President Biden delivered transformative middle class relief by cancelling student debt for working people who need it most — nearly 90% of relief dollars will go to those earning less than $75,000 a year."
The nonpartisan Congressional Budget Office says President Biden's move to cancel student loan debt for many borrowers will run taxpayers more than $400 billion. (Drew Angerer/Getty Images)
Sen. Richard Burr, R-N.C., requested a CBO analysis of the cost of President Biden's student loan handout. (Al Drago/Bloomberg via Getty Images)
House Education Committee ranking member Virginia Foxx, R-N.C., (Samuel Corum/Bloomberg via Getty Images)
