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Report shows $400 billion estimate needed to cancel student loan debt

INDIANAPOLIS (WISH) — A new report from the Congressional Budget Office said President Joe Biden’s plan to cancel student loan debt is estimated to cost $400 billion.

President Biden announced the forgiveness plan in August.

The plan will see $10,000 forgiven for students who earn less than $125,000. That number could grow to $20,000 for students who received Pell Grants.

Democratic lawmakers have praised the plan, while Republicans have gone against it.

According to the Congressional Budget Office, the plan will cost $400 billion over 30 years.

That estimate relies on different issues, including how many eligible borrowers will apply and future economic conditions.

The White House is set to release its own estimate in the coming weeks, while the applications to apply for forgiveness is set for Oct.