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It’s forgiveness, but it will still cost federal money, correct? https://www.npr.org/2022/09/27/1125272287/student-loan-forgiveness-cost-billion https://www.npr

• WoahNoun 4y ago
  There would be no payments from the treasury so no direct cost for the government. The "cost" would be an opportunity cost of collecting payments. Which from a government perspective is offset by the spending and savings in the broader economy for not collecting those payments.
• lapcat 4y ago
  It would cost in the same sense that it costs to lower the tax rate: a lower amount of future payments to the federal government from that particular revenue source. Of course, a lot of student loan debt will never be paid anyway for various reasons, such as deferment, default, or death of the borrower. Loan forgiveness won't result in any immediate payments from the federal government, because these loans are held by the federal government rather than by banks, something that a lot of people seem to misunderstand. The payments were already made years ago when the loans were disbursed.