Secretary of Education Miguel Cardona appeared unable to provide a cost estimate for President Joe Biden’s plan to forgive a portion of certain borrowers’ student loans during a Thursday morning CNN appearance.
“You know, the projections are still coming out depending on how many people take advantage of it,” Cardona told CNN “New Day” co-host John Berman, who pressed him on the cost estimates of Biden’s plan, which calls for forgiveness of up to $10,000 in student loan debt for those earning $125,000 or less a year, with Pell Grant recipients getting $20,000 in student loan debt written off. (RELATED: ‘POTUS Can Do Better’: Liberals Don’t Think Biden Went Far Enough On Canceling Student Debt)
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“Those projections are still coming out based on how many people take advantage of it, but what we’re finding is when the loan payments restart, $4 billion a month will go back into it because people are going to start paying,” Cardona said.
Some economists believe the plan will add to inflationary pressures and increase college tuition costs. An estimate from the University of Pennsylvania estimated the plan would cost between $300 and $500 billion, depending on the final amount of loans forgiven.
“The president has been very clear about reducing the deficit and there are projections not just from our department but Moody’s, for example, are saying that whatever funds go to this loan forgiveness will be offset by the increase in what we’re seeing in loan payment restart for those making over $125,000,” Cardona said. “So concerns about inflation should really be tampered because it does offset.”
The Department of Education did not immediately respond to a request for comment from the Daily Caller News Foundation.
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