$5 billion per month

As the administration – inaccurately – takes credit for deficit reduction, it adds to unnecessary spending.

Note: (11/22/2022): The Department of Education announced it would extend the pause to the sooner of 60 days after resolution of the student debt cancellation litigation or 60 days after June 30, 2023 (which would be the end of August, based on our understanding). An extension to the end of August 2023 would cost $40 billion, bringing the total cost of the pause to $195 billion.

Recent reports suggest the Biden Administration plans to once again extend the federal student loan payment moratorium – currently set to expire on December 31, 2022 – in light of court rulings against the Administration’s unilateral student debt cancellation plan. As we’ve shown several times before, extending the pause is costlyinflationaryregressive, and economically unjustified.  

The pause costs over $5 billion per month and extending it through the end of 2024 would cost at least $120 billion. This would bring the total cost since Spring of 2020 to $275 billion. This represents about 70 percent of the cost of the President’s announced debt cancellation plan and is higher than the ten-year cost of President Biden’s proposal to double the maximum Pell Grant by 2029. 

Committee for a Responsible Federal Budget

And an extension mostly benefits higher earners with advanced degrees, plus adding to inflation.


  1. These extensions are also harming the students who this was intended to help. If they have been delaying paying back the money they owe and if and when the courts rule against them, the extra years that they will be under this debt may affect their long term financial planning (buying a house, having children, retirement, credit score), not to count any extra interest charges that they must pay.

    What baffles me more is why this is taking so long in court. Only Congress can authorize the spending of money from the treasury (Article 1, section 9, paragraph 7 – The Appropriation clause). $275 BILLION is not just reassigning an expenditure from one budget line item to another with a stroke of the pen such as buying copier paper to copier toner. This is NEW spending of over 1/4 of a TRILLION dollars without any vote from Congress.

    As Americans, we should all be outraged that this has gone for this long. I know my House Representative is outraged and maybe he can do something starting in January. What stops this or any president from going out and spending whatever he wants? Now add the additional costs to the taxpayers for the debt that follows.

    If Congress wanted to help these students and screw over the rest of the taxpayers, they could have passed a bill. They have screwed over the taxpayers before and they will do it again expect in this case they are just looking the other way and giving up their sworn duty.


  2. All current student loans will be forgiven, either by direct action or Department of Education regulatory capture.
    Reputable economists forecast a serious recession for FY23 second and third quarters. The student loan issue will be a minefield for the GOP next summer.
    Biden cares not for the students, rather, the higher education lobby own him and the Democratic Party.


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