We will model the Biden administration's student debt forgiveness plan using actual numbers and making some simplifying assumptions. Around 18% of adults in the U.S. have student debt (so 82% do not receive a benefit). To simplify, assume that all adults with student debt will have $13,500 of their debt forgiven, on average. The estimated cost of the program (including administrative costs of managing the program) is $2,800 per person. There are no externalities to consider. Assume that everyone has the same utility function that depends on the net payoff of the plan (c): U(c)=c Assume the plan is implemented. What is the total social cost/benefit