• President Joe Biden on Wednesday announced a sweeping student loan forgiveness plan of up to $10,000 per borrower, or up to $20,000 for those with Pell Grants.
  • But some policy experts say the plan has significant drawbacks, including higher costs to all taxpayers without solving the U.S. higher education system's underlying issues.

Some policy experts were quick to sound an alarm after President Joe Biden announced a sweeping new plan Wednesday to cancel up to $10,000 in federal student loans for borrowers with incomes under $125,000.

Biden will cancel up to $20,000 for recipients of Pell Grants.