The White House is silent on how President Biden’s decision to cancel between $10,000 to $20,000 in student debt for some Americans will be paid over the long run and whether it will drive tax bills higher even for average Americans.
Much of the discussion about the student debt handout has centered around its inflationary effects. But the gift will also have to be paid for, and that means taxpayers are likely on the hook for much of the principal and interest as the cost of the handout, estimated to be at least $300 billion and possibly as high as 600 billion, is dumped on top of the nearly $31 trillion in existing U.S. debt.
