Biden’s student debt forgiveness plan may cost taxpayers an average of $2,000

Some policy experts were quick to sound an alarm after President Joe Biden announced a sweeping new plan Wednesday to cancel up to $10,000 in federal student loans for borrowers with incomes under $125,000.

“There’s a transfer of wealth from the society at large to people who borrowed to go to college right now,” said Andrew Lautz, director of federal policy at the National Taxpayers Union.

“That has consequences for consumers,” Lautz said. “It has consequences for taxpayers.”

Lautz published an estimate on Tuesday that found Biden’s plan could cost the average taxpayer more than $2,000, based on the $10,000 forgiveness per student loan borrower that had been touted.