CNN presses Education Secretary Cardona about cost of student loan handout

Department of Education Secretary Miguel Cardona joined CNN's "New Day" on Thursday to discuss the president's announcement that he would cancel $10,000 of student loan debt for certain borrowers in a massive $300 billion handout. 

CNN's John Berman pressed Cardona multiple times about the cost of President Biden's plan to cancel student loan debt for those making under $125,000 a year. 

Cardona said that "projections were still coming out."

"What's the range, Mr. Secretary?" Berman followed up. "What's the range of possibilities?"

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"Well, like I said, those projections are still coming out based on how many people take advantage of it, but what we’re finding is when the loan payments restart, $4 billion a month is going to go back into it because people are going to start paying. Anyone making over $125,000 will resume payment into their loans and it does offset whatever funds are being placed to help those who are most severely in need," Cardona said. 

Berman said it wouldn't offset the "total cost over time" and asked the Education Secretary how it would be paid for. 

"Look, the president has been very clear about reducing the deficit and there are projections not just from our department but Moody’s, for example, are saying that whatever funds go to this loan forgiveness will be offset by the increase in what we’re seeing in loan payment restart for those making over $125,000. So concerns about inflation should really be tampered because it does offset," he said. 

Berman also asked about what the student loan debt forgiveness plan does to address the growing cost of college. 

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"We are increasing accountability on colleges, higher education institutions for profit institutions and making sure that the return on investment in higher education is there. We’re not afraid of naming and shaming places that are going after students in a predatory way," he responded. 

Cardona, in a statement on Wednesday, said that education should "set us free." 

"Earning a college degree or certificate should give every person in America a leg up in securing a bright future. But for too many people, student loan debt has hindered their ability to achieve their dreams — including buying a home, starting a business, or providing for their family," he said. "Getting an education should set us free; not strap us down! That’s why, since Day One, the Biden-Harris administration has worked to fix broken federal student aid programs and deliver unprecedented relief to borrowers."

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"In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023," Biden tweeted on Wednesday, announcing his plan.