An analysis of President Biden’s new student debt relief plans by the University of Pennsylvania’s Wharton School estimates the new plans he’s announced will cost around $84 billion.

Mr. Biden announced earlier this week five new plans to provide relief to student loan borrowers. While some of the plans were already encompassed by the SAVE plan, announced in 2023, the forgiveness program for those in long-term debt may incur additional costs.

The new student debt relief measures announced by Mr. Biden included the waving of up to $20,000 in accrued and capitalized interest for people making under $120,000 a year and the elimination of student debt for borrowers who have been repaying loans for more than 20 years.

Mr. Biden also announced new plans to assist borrowers undergoing financial hardship, automatically discharge debt for borrowers who are eligible but not yet enrolled in other forgiveness programs, and help borrowers who are enrolled in low financial value programs.

The Penn Wharton Budget Model’s analysis estimates that the new plans will cost an additional $84 billion over ten years. The SAVE plan was already estimated to cost around $475 billion over ten years, meaning the total cost of new debt relief programs will be about $559 billion over ten years.

According to the analysis, the main provision of the new plans is accountable for the majority of the $84 billion. About 58 percent of the cost is attributable to the waving of accrued and capitalized interest for a swath of borrowers.

The elimination of debt for borrowers who have been repaying loans for over 20 years and assistance for borrowers experiencing hardship in repayment is responsible for most of the rest of the estimated cost over ten years.