It will take less than a decade for student loan debt to return to the level it was at before President Joe Biden canceled nearly half a trillion dollars of the debt at taxpayer’s expense, a new report from a leading budget group says.
The Committee for a Responsible Federal Budget released the analysis. They estimate that Biden’s debt cancellation of $10,000 per borrower and $20,000 for Pell Grant recipients will cost the federal government between $440 billion and $600 billion.
However, they say it will only take a few years for student debt levels to rise again, erasing the cuts of Biden’s cancellations.
“We estimate that if all eligible borrowers receive debt cancellation, the overall student debt portfolio would return to its current level of $1.6 trillion in five and a half years – in 2028,” CRFB said. “In inflation-adjusted dollars, student debt would return to its current level in 2031.”