Biden Student Loan Forgiveness Plan to Cost Taxpayers $84 Billion

Whew, buckle up, folks, because President Joe Biden’s new student loan forgiveness plan is turning out to be a real wallet-buster. According to the Penn Wharton Budget Model, this latest proposal would set taxpayers back a whopping $84 billion. And that’s on top of the jaw-dropping $475 billion estimated cost of his SAVE plan. Yikes!

The PWBM’s analysis threw some major shade on Biden’s “New Plans,” pointing out that a chunk of that $84 billion would actually benefit borrowers from households with incomes higher than those covered in the SAVE plan. Talk about a costly handout to folks who can probably manage their debts without Uncle Sam’s help!

So, what exactly is in this new plan that’s sending the national debt soaring? Well, among the five main provisions, there’s talk of waiving accrued and capitalized interest for millions of borrowers (for a cool $57.75 billion) and wiping out student debt for those who’ve been making payments for 20 years or more. But wait, there’s more! This plan also aims to help those who are struggling to repay their loans and even tosses in automatic debt discharge for eligible borrowers not currently enrolled in any forgiveness programs. It’s like a student loan forgiveness bonanza!

Now, get this: the Penn Wharton Budget Model estimates that this plan might offer debt relief for about 17.2 million borrowers. However, the Biden administration is singing a much grander tune, claiming that 25 million to 30 million folks will benefit. Well, someone’s certainly inflating the numbers here, and it ain’t the PWBM.

It’s pretty clear that this hefty price tag is going to stir up some serious opposition from the GOP. After all, this plan was a big campaign promise from Biden, and it looks like he’s dead set on delivering it — no matter the cost. Hold onto your wallets, folks, because it looks like Uncle Sam is on a student loan forgiveness spree, and we’re all footing the bill!

Written by Staff Reports

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