https://issuesinsights.com/2022/09/27/bidens-student-loan-bailout-is-just-the-beginning-as-other-debtors-line-up-for-relief/
Nobody has yet come up with a definitive estimate of the full taxpayer cost of President Joe Biden’s student loan bailout, but the numbers are already staggering. And as budget-busting as this one is, it’s only whetted the Left’s appetite for more loan bailouts.
The Congressional Budget Office released a cost estimate for Biden’s loan cancellation executive order. He plans to forgive $10,000 in federal student loans for borrowers who earn less than $125,000 a year. Low-income Pell Grant borrowers are eligible for an additional $10,000 cut. The CBO figures this will cost $400 billion over the next decade. Plus another $20 billion in costs by the extension of Biden’s “emergency” payment suspension through the end of this year – a suspension allegedly in response to COVID, which Biden himself says is no longer a pandemic.
That is close to the estimate that the Wharton school produced in late August. It pegged the 10-year cancellation cost between $469 billion and $519 billion.
But that’s only a small part of the taxpayers’ largesse Biden wants to shower on college students.
As the CBO notes “The estimates presented here do not include any effects of the actions affecting income-driven repayment plans.”
If anything, that will cost taxpayers more than the cancellations. Biden wants to vastly expand this escape valve for student loans. As it stands, students have the option of capping their loan payments at 10% of their income, and any debt left over after 20 years will be forgiven.