Current Events > Biden's student loan forgiveness plan will cost $400 billion, budget office says

(+) Yeah! (+)

https://www.npr.org/2022/09/27/1125272287/student-loan-forgiveness-cost-billion

Joe Biden's plan to cancel up to $20,000 in student loan debt for federal aid borrowers is expected to cost about $400 billion, according to the Congressional Budget Office.

The estimate is for a period of the next 30 years and will add to the country's deficit, it said.

Additionally, the pause on federal student loan repayments cost $20 billion from September to December 2022, the agency said.

Though, the office also said its estimates are "uncertain," as it cannot accurately predict how much student loan debt will be repaid after Biden's plan takes effect. The estimates also do not include loans issued after June 30.

As of June 30, the CBO estimates federal student loan debt to be at $1.6 trillion among 43 million borrowers.

Biden announced in August a sweeping effort to forgive federal student loan debt up to $20,000 for Pell Grant recipients, and up to $10,000 for others who qualify under the plan's income cap.

About 95% of borrowers meet the criteria for forgiveness and about 45% of borrowers will have their balances completely wiped out, the CBO said.

Yet it will have an immediate effect in the economy. I will have 78 dollars more to spend monthly. Others will have hundreds.

Cool

Cool, roll it out

Do country deficits even matter any more?

CARRRNE_ASADA posted...

Yet it will have an immediate effect in the economy. I will have 78 dollars more to spend monthly. Others will have hundreds.

That's not really the effect we want right now. The government threw in too much stimulus during the pandemic so inflation skyrocketed.

That figure seems really iffy though. Is it counting potential returns on interest and some other junk?

SquantoZ posted...

Do country deficits even matter any more?

Deficits never really mattered. It's mostly people just thinking like a country's finances are run like a home checking account and the debt ceiling is stupid and shouldn't exist.

Breaking news: Doing good stuff costs money

I love seeing it

Tyranthraxus posted...

Deficits never really mattered. It's mostly people just thinking like a country's finances are run like a home checking account and the debt ceiling is stupid and shouldn't exist.

My thoughts too. I can just see this being a Republican talking point to piss off their supporters some more.

that's money that could be going towards helping ukraine

CARRRNE_ASADA posted...

Yet it will have an immediate effect in the economy. I will have 78 dollars more to spend monthly. Others will have hundreds.

I kind of wonder how the Fed is going to tame inflation. Since if there is any adversity the government will just do stimulus which in turns leads to more people with money in their hands.

It is good this helps people but this is in the midst of an inflation fight. Just look what happened to the UK when they did their tax cuts.

Prices will rise. Whats new.

Kaiganeer posted...

that's money that could be going towards helping ukraine

Tough choice. Glad this is the path they chose though.

SodomInsane posted...

I kind of wonder how the Fed is going to tame inflation. Since if there is any adversity the government will just do stimulus which in turns leads to more people with money in their hands.

It is good this helps people but this is in the midst of an inflation fight. Just look what happened to the UK when they did their tax cuts.

To fight inflation, The Fed is willing to raise unemployment rates and lower wages

funny how airline and other corporate bailouts and tax cuts dont make this much noise in regards to cost

Scohen posted...

funny how airline and other corporate bailouts and tax cuts dont make this much noise in regards to cost

Military expenditures too

Billions in tax cuts for the rich: *crickets*

Helping the lower and middle class: So this is how student loan forgiveness will destroy the universe.

TC thinks this is a bad thing and somehow Well take his ridiculously stupid opinion on this topic.

Scohen posted...

funny how airline and other corporate bailouts and tax cuts dont make this much noise in regards to cost

They never do. We have infinite money for corporations and the military and none for regular people.

Scohen posted...

funny how airline and other corporate bailouts and tax cuts dont make this much noise in regards to cost

It makes tons of noise. People on the left complain all the time. People on the right will stay silent. People complain about spending they don't agree with