Overview

• The Biden administration's new student loan cancellation initiatives could add between $250 billion to $750 billion to the national deficit.
• Recent plans involve cancelling debt for borrowers facing hardships, which could be the most costly part of the proposal.
• Public opposition is mounting, with over 5,000 comments condemning the plan submitted through a grassroots petition in one night.
• Legal challenges persist as eighteen states have filed lawsuits against the administration's SAVE plan.
• Economists warn that unilateral debt cancellations could exacerbate inflation and interest rates.