WASHINGTON — President Biden’s plan to wipe out significant amounts of student loan debt for tens of millions of borrowers could cost about $400 billion, the nonpartisan Congressional Budget Office said in a report Monday.
The estimate renewed the debate between supporters of student debt forgiveness and those who say the initiative amounts to reckless spending.
The C.B.O. also said the full price tag of the plan could push even higher because Mr. Biden extended a pause on federal student loan repayments through the end of the year, which could end up costing some $20 billion.
In August, Mr. Biden announced a plan to forgive $10,000 in debt for those earning less than $125,000 per year and $20,000 for those who had received Pell grants for low-income families. The C.B.O. expects that…