Student Savings

The total cost of the student-loan relief package is about $500 billion to the Treasury, with about $360 billion in immediate cancelled debt costs and the rest coming over about a decade. As for inflationary impacts, they are likely to be small. The combination of immediate debt relief twinned with near simultaneous restarting of debt and interest repayments to DoE attenuates inflationary pressures, compared to the current moratorium base.