President Joe Biden's plan to erase student debt and modify payments for millions of Americans could cost as much as $1 trillion, according to budget analysts.

The Wall Street Journal reported Monday that analysts' forecasts for the student loan plan challenge the administration's efforts to reduce the federal deficit.

Biden on Aug. 24 said the U.S. government will forgive $10,000 in student loans for many debt-saddled college graduates, a move that could boost support for his fellow Democrats in the November congressional elections but also might fuel inflation.

The Penn Wharton Budget Model, frequently cited by policy makers, said the price tag for the student loan program could reach $1 trillion. Other analysts say the bill could be nearly $500 billion.

The Wharton model says the debt-cancellation portion alone could cost more than $500 billion.