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Congressional Budget Office Says Biden’s Student Loan Bailout Could Cost $400 Billion

Congressional Budget Office Says Biden’s Student Loan Bailout Could Cost $400 Billion

“analysis does not include the cost of adjustments to income-driven repayment plans”

This estimate seems awfully low, doesn’t it?

CNBC reports:

Biden’s student loan relief could cost $400 billion, Congressional Budget Office says

President Joe Biden’s student loan cancellation plan will cost an estimated $400 billion over 30 years, according to the Congressional Budget Office.

Biden last month announced a plan to forgive $10,000 in federal student loans for borrowers who earn less than $125,000 a year, or have a household income of under $250,000 if filing jointly. Low-income Pell Grant borrowers are eligible for an additional $10,000 cut.

In addition to the costs to forgive that debt, the CBO estimated the cost of Biden’s pause on student loan payments from September through December 2022 will total $20 billion.

The CBO is a nonpartisan agency that calculates the costs of federal revenue and spending plans for Congress. Its latest analysis does not include the cost of adjustments to income-driven repayment plans. Biden’s executive order lowered the cap a borrower would have to pay on their student loans to 5% of their income, down from 10%. The Committee for a Responsible Federal Budget, a think tank opposed to Biden’s student loan plan, has estimated the change will cost an additional $120 billion.

The White House says more than 40 million Americans may be affected by the student loan changes, and half of those could see their entire student debt eliminated.

The application to apply for loan forgiveness is scheduled to be available in early October. At Monday’s White House briefing, press secretary Karine Jean-Pierre said the administration would have updates on the application process “very soon.”

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Comments

Remember the good old days, when our banks, abusing the privileges that came with Reagan’s deregulation orders, pissed away customer deposits and stuck FDIC with a $600B bill? And the left whined about how it was the biggest federal debt line item ever and would destroy the United States?
Now idiot Brandon creates debts of that magnitude with the stroke of a pen, just because he thinks they’re a good idea — illegal debts, to boot — and Democrats party in the streets.

    Dimsdale in reply to henrybowman. | September 27, 2022 at 8:33 pm

    It’s like gambling (lotteries), alcohol and marijuana; it’s only a good idea when they do it, and more importantly, profit from it in some way, always at the expense of the honest American citizen.