19 Sep Not just ‘s the student loan moratorium expensive, it is extremely regressive

To possess perspective, that it $52 billion annual pricing is more than the federal government uses to the any facet of degree on a yearly basis. It's more double the $23 million government entities spent on Pell Grants inside the 2019 (up until the pandemic). It's also nearly double the due to the fact $twenty seven million federal costs during the 2019 of one's chief advanced schooling tax costs, including the Western Opportunity Taxation Borrowing from the bank and also the student loan interest rate 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 over 10 years). Continuing the moratorium would be three times more expensive than all of President Biden's remaining higher education proposals in the American Families Plan, including his increase and expansion of Pell Grants, completion grants for community colleges, and grants for schools serving minority students.