Student-Loan Forgiveness Plan’s Cost Likely to Widen 2022 Federal Deficit

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President Biden’s student-debt forgiveness plan is likely to widen the federal budget deficit for the just-ended fiscal year, when compared with the White House’s previous estimates.

Providing up to $20,000 in student-loan cancellations to millions of Americans will cost $379 billion over roughly three decades, the Education Department estimated. That entire cost will be reflected as a one-time item in the budget results for fiscal year 2022, which ended Sept. 30, a senior administration official said.

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