Joe Biden expected to announce $10,000 student loan forgiveness program

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President Biden's expected student loan forgiveness will cost American taxpayers an estimated $300 billion

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According to the Penn Wharton Budget Model, a one-time maximum debt forgiveness of $10,000 for borrowers who make less than $125,000 will cost around $300 billion for taxpayers.

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Progressives and liberals have hounded the president to provide broader relief to hard-hit borrowers, while moderates and Republicans have questioned the fairness of any widespread forgiveness.

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More than 43 million Americans have federal student debt, with almost a third owing less than $10,000 and more than half owing less than $20,000

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Biden proposed canceling up to $10,000 per borrower, with no mention of an income cap but in recent months by embracing the income limit

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According to CRFB, the $10,000 forgiveness plan would undermine the recently passed Inflation Reduction Act by consuming nearly 10 years of deficit reduction and wipe out disinflationary benefits.

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