Karine Jean-Pierre says White House doesn't have 'real sense' of how much student loan handout will cost
Third party groups say President Biden's handout will cost taxpayers around $500 billion
{{#rendered}} {{/rendered}}The White House can't be sure how much President Biden's student loan forgiveness program will cost, White House press secretary Karine Jean-Pierre says.
Jean-Pierre made the statement during her White House press briefing on Thursday, telling reporters that the cost of the program will depend on borrowers and the nature of their loans. Watchdog groups say Biden's plan will cost taxpayers up to $600 billion over the next 10 years.
"All of this, when it comes to cost, will depend on how many of the loans canceled were actually expected to be repaid," Jean-Pierre said. "It will depend on how many borrowers actually take up this opportunity before we have a real sense."
{{#rendered}} {{/rendered}}Jean-Pierre went on to argue that the cost will be offset by the deficit reduction included in other Biden administration priorities. She told reporters that the bill will not be "fully paid for" internally as past White House initiatives have been, but will be further offset by the resumption of loan payments after being paused since 2020.
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White House press secretary Karine Jean-Pierre speaks to reporters during the daily news conference in the Brady Press Briefing Room at the White House on Aug. 9, 2022, in Washington, D.C. (Chip Somodevilla/Getty Images)
"We don't believe that it's going to increase the deficit, because what we're saying is the $1.7 trillion – we've done the work to lower the deficit," she said.
{{#rendered}} {{/rendered}}The Committee for a Responsible Federal Budget released an analysis on Thursday stating that the program will cost between $440 and $600 billion, settling on a central estimate of approximately $500 billion.
President Biden greets people after returning to the White House in Washington, Wednesday, Aug. 24, 2022. (AP Photo/Susan Walsh)
Biden announced up to $20,000 in federal student loan forgiveness on Wednesday. Students who attended college using federal Pell Grants qualify for the $20,000, but those who did not use the program qualify for $10,000 in forgiveness. The handout only applies to borrowers making less than $125,000 per year.
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More than 43 million Americans have federal student debt, amounting to a total of more than $1.6 trillion. Nearly one third of those owe less than $10,000 and more than half owe less than $20,000, according to the latest federal data.