The pace is actually large due to the fact graduate student loans features higher interest rates
To own framework, it $52 million yearly prices is over the federal government uses to the any aspect of degree yearly. It is over double the $23 mil the government spent on Pell Provides when you look at the 2019 (before the pandemic). It’s also nearly twice as much because the $27 million government cost when you look at the 2019 of one’s head degree taxation expenditures, including the American Options Tax Credit in addition to student loan rate of interest deduction.
The current student loan moratorium is also far more expensive than several, better-targeted alternatives to ease borrowers’ costs or make college more affordable. For example, the annual cost of extending the moratorium is about five times the total estimated cost of President Biden’s plan to provide free community college (the 22-month cost of the moratorium is similar to the community college plan cost more a decade). Continuing the moratorium would be three times more expensive than all of President Biden’s remaining higher education proposals in the American Families Plan, including his increase and expansion of Pell Grants, completion grants for community colleges, and grants for schools serving minority students.