The White House is staying mum on how it plans to pay for President Biden’s decision to cancel between $10,000 and $20,000 in student debt for some Americans, or whether future tax increases will be needed to cover the proposal, which some estimates , costing more than $500 billion. Despite unveiling the policy earlier this week, administration officials have yet to specify how the proposal will be paid for in the long term. Since the current plan requires the government to forgive the debt, that means taxpayers are likely to be on the hook for much of the principal and interest on top of the nearly $31 trillion in existing U.S. debt. Fox News Digital again asked management how it plans to pay for the flyer. The White House did not respond to the question, nor was it considering future tax increases to offset Biden’s student loan handout. NEARLY 100 DEMOCRATS DEMAND PELOSI HOLD BIDEN ACCOUNTABLE FOR $500 BILLION STUDENT DEBT HANDBOOK Biden announced Wednesday that he plans to forgive $10,000 in student debt for borrowers making less than $125,000 a year. (AP) (AP Newsroom) Administration officials, while tight-lipped on how to offset the additional spending, have argued in recent days that the national deficit is already sinking under Biden’s watch. “We’ve actually achieved $350 billion in deficit reduction, and this year we’re projected, by the end of the fiscal year, to be $1.7 trillion in deficit reduction,” White House press secretary Karin Jean-Pierre said at the daily White House briefing. Administration officials also claimed that the cost of Biden’s student loan handout cannot be fully calculated, as it is unclear how many borrowers will choose to take advantage of the opportunity. They say it remains unclear how many people would have paid off their loans in full over time anyway. “All of this in terms of costs will also depend on how much of the canceled loans were actually expected to be repaid,” Jean-Pierre said. DEMOCRATS OPPOSE BIDEN STUDENT LOAN BILL PREVIOUSLY SUPPORTED SEPARATE DEBT CANCELLATION BILL However, the National Taxpayers Association Foundation disagrees. The group released an analysis earlier this week estimating that if the student loan handout adds nearly $330 billion to the deficit over the next decade, as a budget model from the Wharton School of the University of Pennsylvania of Business claims, the average cost per taxpayer will be $2,085. But that could be on the low end. The Committee for a Responsible Budget estimates the cost of handouts at between $440 billion and $600 billion. The fiscally conservative think tank, in particular, says the federal government will have to find a way in the future to make up for the written-off loans, whether through spending cuts or tax increases. Much of that, the team predicts, will be done through the latter. WASHINGTON, DC – AUGUST 25: Student loan borrowers rally in front of the White House to celebrate President Biden canceling student debt and kick off the fight to cancel any remaining debt on August 25, 2022 in Washington, DC. (Photo by Paul Morigi/Getty Images for We the 45m) (Paul Morigi/Getty Images for We the 45m) When broken down, the data showed that the sum was significantly higher for the highest income brackets, but still covered the middle class. For example, according to the group, taxpayers earning between $1 and $50,000 a year would pay more than $158. The cost for those making between $50,000 and $75,000 is estimated to be $866 and $1,477 for those making $75,000 and $100,000, while those making between $100,000 and $200,000 will face costs of more than $3,150. Winners who put down $200,000 to $500,000 will pay almost $9,950. “Some may dispute that taxpayers bear the cost of canceling student debt. But the $329 billion cost of canceling student debt would be $329 billion previously borrowed by the federal government and not returned to the Treasury,” reports analysis of the organization. “Policymakers will have to fill this gap going forward with government spending cuts, tax increases, more borrowing, or some combination of these.” Democrats argue that the national deficit is already sinking under Biden’s watch. (Photo by Drew Angerer/Getty Images) (Photo by Drew Angerer/Getty Images) Biden announced Wednesday that he plans to pardon $10,000 in student debt for borrowers who receive less than $125,000 per year. Pell Grant recipients will receive $20,000 in debt payments, provided their income is below the $125,000 threshold. Administration officials claim that no individual or household in the top 5 percent of earners will benefit from the decision. The White House it also extends a pause in student loan payments until the end of the year. The announcement coincides with a new Department of Education proposal that would allow borrowers to limit their undergraduate loan repayments to 5 percent of their monthly income, raising the cost of the handout to taxpayers. CLICK HERE TO GET THE FOX NEWS APP Penn Wharton’s budget model estimates that the total cost of the proposal, when factoring in loan forbearance and the new repayment cap, could be more than $1 trillion.
Haris Alic covers Congress and politics for Fox News Digital. He can be reached at [email protected] or follow him on Twitter at @realharisalic.