Not only is the student loan moratorium costly, it is also regressive

To have perspective, this $52 billion yearly pricing is more than the us government uses into various other aspect of higher education each year. It is more than double the $23 mil the us government used on Pell Provides when you look at the 2019 (before pandemic). Additionally it is nearly twice as much due to the fact $27 million federal costs inside the 2019 of head higher education income tax expenditures, such as the American Opportunity Taxation Borrowing as well as the education loan interest deduction.

For example, the annual cost of extending the moratorium is about five times the total estimated cost of President Biden’s plan to provide free community college (the 22-month cost of the moratorium is similar to the community college plan cost more than 10 years). Read more