Biden's student loan forgiveness expected to surpass $475B

1,508 Views | 13 Replies | Last: 1 yr ago by dixichkn
ProgN
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https://www.dailymail.co.uk/news/article-12308599/Bidens-new-student-loan-forgiveness-program-cost-taxpayers-475-BILLION-10-years-economic-model-predicts.html
Quote:

President Joe Biden's new student loan forgiveness plan based on income-driven re-payments will cost taxpayers $475 billion over the next ten years, an economic model has predicted.

The Penn Wharton Budget Model lays out the sum of one of Biden's new pushes to give millions of Americans debt relief - after the Supreme Court struck down his first plan two weeks ago.

A conservative estimate sees the program costing as little as $390.9 billion over a decade, while the maximum projection puts the bill at $558.8 billion.

The model shows an exponentially growing amount of student loan debt over the next 10 years that will see taxpayers paying off nearly $500 billion

Quote:

A parallel plan, Saving on a Valuable Education (SAVE), set to go into effect on July 1, 2024, would cut monthly income-based payments in half.

It would also get rid of monthly payments for minimum-wage earners and forgive all outstanding debt for Americans who have been paying for ten years and took less than $12,000.

The model found that this would also put a significant burden on taxpayers.

The results state that taxpayers will face $200 billion in cases because of payment reductions on the $1.64 trillion in loans outstanding in 2023.

The remainder, roughly $275 billion, comes from reduced payments for about $1.03 trillion in new loans that the model estimates will be spread over the next 10 years.

'We estimate a take-up rate for future loans of 70 percent, implying that about $645 billion in future loans will be subsidized', the economists stated in their conclusion.

'About 6.57 percent of future borrowers (or 4.98 percent of total predicted loan volume) will never have to make any payments under SAVE.'

Penn Wharton economist Junlei Chen wrote: 'Due to the increased generosity of the newly proposed IDR plan, future student borrowers have the incentive to increase their federal student loan borrowing, shifting the current college financing pattern towards more loan borrowing instead of paying out-of-pocket.

'Under this scenario, we consider the situation where future students react to the increased generosity by maxing out the federal direct loan amount available to them.'

Under this plan most community college students would not have to pay back any debt, the Biden administration said.
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David Williams, President of the Taxpayers Protection Alliance, told DailyMail.com: 'This new announcement is absurd and is a slap in the face to taxpayers.

'The Biden administration is hell-bent on recklessly spending hundreds of billions of taxpayer dollars bailing out wealthy student loan borrowers, even after being rebuked by the country's highest court.

'More than 80 percent of the country that doesn't have student loans will be forced to subsidize the small percentage of Americans that do have loans. And, once again, the Biden administration is circumventing Congress.

Whether it's mission creep by agencies such as the Federal Trade Commission with politically motivated antitrust lawsuits, the Securities and Exchange Commission with ESG rules, or the latest Department of Education ending with student loans, these actions must be stopped immediately.'
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It followed fury from taxpayers who have never been to college and Republicans claiming middle-class Americans were funding a bailout for students.
FJB

If dems and blue states can just ignore SCOTUS, then red states should do the same because we are no longer governed by laws. Let's just dissolve this country and rip the f'ing band-aid off.
Rapier108
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Buying votes, which was always the real goal.

They knew the first plan would get struck down, which is what they wanted. 85% of college students and recent graduates blame the Supreme Court and/or Republicans for it.
"If you will not fight for right when you can easily win without blood shed; if you will not fight when your victory is sure and not too costly; you may come to the moment when you will have to fight with all the odds against you and only a precarious chance of survival. There may even be a worse case. You may have to fight when there is no hope of victory, because it is better to perish than to live as slaves." - Sir Winston Churchill
AggieMD95
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AG
Remember when 10 billion $ for border fencing was too costly? I member
J.P. 03
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AG
ProgN said:

A parallel plan, Saving on a Valuable Education (SAVE), set to go into effect on July 1, 2024, would cut monthly income-based payments in half.

Now they're just taunting us. If the education you borrowed all that money to obtain was actually valuable, you'd be making enough to not need the government's help to pay it back.
ProgN
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J.P. 03 said:

ProgN said:

A parallel plan, Saving on a Valuable Education (SAVE), set to go into effect on July 1, 2024, would cut monthly income-based payments in half.

Now they're just taunting us. If the education you borrowed all that money to obtain was actually valuable, you'd be making enough to not need the government's taxpayers help to pay it back.
FIFY
Doth My Nugs Bequeath Me?
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How is this money print tax to pay for debt different than the one recently ruled unconstitutional?

Is he just going to be sued & then the entire court process take place again?
AgFormerlyInIrving
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AG
Colonials didn't face nearly as much government theft as we do.
Premium
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AG
Must be desperate to buy votes, if it's $500B over 10 years that's pretty disingenuous and at best barely meant to help the ones without means (bad degrees and lazy), and at worst barely help anyone.
C@LAg
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if we ever get a republican president again, can they reverse it immediately since no law was passed?

also...amazing an original $35B forgiveness plan is now more than 10 times that much.

Guess JoeB got his 10%/$35B
bmks270
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Quote:

'Under this scenario, we consider the situation where future students react to the increased generosity by maxing out the federal direct loan amount available to them.'


I think this prediction will come true. Borrowers know they won't have to repay the full amount.
C@LAg
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republicans need to start impeachment iummediately.
YouBet
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In a matter of two weeks we went from Biden's college loan write off plan being deemed illegal to him doing it anyway and throwing in free college for future students on top of it.

When are red states going to ignore this traitorous POS and we just do our own thing too?

F* him and his entire POS family.
TexAgs91
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> President Joe Biden's new student loan forgiveness plan based on income-driven re-payments will cost taxpayers $475 billion over the next ten years

Vote for me, I'll raise your taxes.

It's so evident that the dems DGAS. They know they can cheat to "win" the next election.
"Freedom is never more than one election away from extinction"
Fight! Fight! Fight!
dixichkn
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