As Fox News reported:
According to the Penn Wharton Budget Model, a one-time maximum debt forgiveness of $10,000 for borrowers who make less than $125,000 will cost around $300 billion for taxpayers.
The cost increases to around $330 billion if the program is continued over the standard 10-year window, according to the figures.
The precise details of Biden's plan were being kept to an unusually small circle within the Biden administration and were still not finalized on the eve of the announcement, sources told the Associated Press.
The nation's federal student debt now tops $1.6 trillion after ballooning for years. More than 43 million Americans have federal student debt, with almost a third owing less than $10,000 and more than half owing less than $20,000, according to the latest federal data.
Pandemic-era payment freezes were set to end on Aug. 31.
The cost increases to around $330 billion if the program is continued over the standard 10-year window, according to the figures.
The precise details of Biden's plan were being kept to an unusually small circle within the Biden administration and were still not finalized on the eve of the announcement, sources told the Associated Press.
The nation's federal student debt now tops $1.6 trillion after ballooning for years. More than 43 million Americans have federal student debt, with almost a third owing less than $10,000 and more than half owing less than $20,000, according to the latest federal data.
Pandemic-era payment freezes were set to end on Aug. 31.
The $10,000 in forgiveness is in line with what Biden pitched on the campaign trail, but the $125,000 income cap is new, and likely is to avoid the inevitable criticism that would arise from high-earning doctors and lawyers getting a government hand out. An analysis from the Foundation for Economic Education found that full debt forgiveness would benefit the top 20% of income earners six times more than the bottom 20%, as those raised in higher earning households are more likely to go to college in the first place (and earn more because they went to college).
Amazingly, this plan to blow another $300 billion as if it's monopoly money comes just days after Biden signed an act he pretends will reduce inflation.
Matt Palumbo is the author of The Man Behind the Curtain: Inside the Secret Network of George Soros
