At the end of last month, President Biden announced the latest round of student loan debt cancellation, wiping out $7.7 billion in loans for some 160,000 people. Combined with the other, more targeted student debt cancellation measures Biden has pursued as a piecemeal alternative to the mass cancellation the Supreme Court struck down last year, President Biden has now canceled around $167 billion worth of loans.
To put that number in context, we again took a look at that total cost in the context of funding for other agencies as we did last year for the mass cancellation. For the current purposes, we use the 2024 estimated budget authority for various agencies from the OMB Historical Tables (see table 5.2: Budget Authority by Agency: 1976-2029). So far, the cost of piecemeal student loan forgiveness exceeds the estimated 2024 budget authority for the Departments of Commerce, Energy, Justice, and State combined.
To check our work, we performed the same exercise looking at the estimated outlays for 2024 (see table 4.1: Outlays by Agency, 1962-2029). The conclusion was nearly the same. The cost of Biden’s student loan cancellation to date virtually matches the estimated outlays of the same four agencies combined.
In other words, the cost of loan cancellation to date would have funded four different agencies for this fiscal year. President Biden may not have been able to pursue loan cancellation as he originally envisioned, but the cost of doing so still meets or exceeds the cost of running multiple agencies.