“With inflation at a 40-year high and unemployment near historic lows, there is absolutely no justification for extending the student debt pause yet again. The pause was put in place as an emergency measure early in the pandemic. As the President has repeatedly pointed out, the pandemic recession is long over,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.
“The student debt pause has already cost the federal government over $150 billion and contributed to inflation. Extending the pause through the end of 2024 would cost over $120 billion more, bringing the total cost to nearly $300 billion,” she added.
The Congressional Budget Office has said loan forgiveness would cost roughly $400 billion over the next three decades.
The Washington Post first reported that the White House was weighing another extension of the pause on loan repayments.
The Biden administration announced in August its plans to cancel $10,000 in student debt for anyone making less than $125,000 or households with incomes of less than $250,000. Pell Grant recipients could receive $20,000 in total debt forgiveness.
Already 16 million people have had their debt relief approved and about 26 million people have applied for debt relief, according to the White House.
This article was provided by Bloomberg News.