Shocker. The Congressional Budget Office has scored Joe Biden’s student loan program, including the canceling of debt, the extension of a pause on student loan payments, and a decrease in the percentage of income borrowers can be forced to pay from 10% to 5%. The final numbers are horrifying for Main Street Americans being asked to pick up the tab.
The Biden administration either didn’t know how much it would cost or was too afraid to tell Americans. Multiple requests to Press Secretary Karine Jean-Pierre for an estimate went unanswered. Now Americans know why.
- Biden Admin Doesn’t Have Any Idea How Much Student Loan Giveaway Will Cost
- WHAT SHE WON’T TELL YOU: Staggering New Estimate of Student Loan Bailout
- Biden’s Press Sec. Can’t Answer Who Is Paying for Student Loan Slush Fund
The CBO estimate is over half a trillion dollars and is more than twice what the Biden administration initially signaled the cost would be. John Sexton reports at Hot Air:
President Biden’s student debt forgiveness plan will cost an estimated $400 billion over ten years. Actually, it will be more than that because of other changes included in the executive order.
The White House’s plan to cancel student loan debt for tens of millions of American borrowers will cost roughly $400 billion, according to a new estimate released by Congress’ nonpartisan scorekeeper.
The scorekeeper also found that the White House’s plan to temporarily extend an existing pause on student loan payments would cost roughly $20 billion…
The CBO estimate excludes the White House’s simultaneous move to lower the monthly amount borrowers can be forced to repay as a percentage of their income from 10 percent to 5 percent. That policy is set to cost an additional $120 billion, according to estimates from the Committee for a Responsible Federal Budget, a D.C.-based think tank that has opposed Biden’s policy.
So we’re probably looking at well over half a trillion dollars over ten years.
Action Line: This one-time giveaway won’t fix America’s student loan problem, and it won’t help the taxpayers who will be forced to fund it. It’s simply an election-year giveaway looking to earn as many votes as possible from a favored constituency. If you worked hard to pay off your loans, and you know the value of saving ‘til it hurts, let’s talk. I want to hear your story. In the meantime, if you know someone who has recently graduated from college or even high school, click here to download my free Special Report: How To Invest After Graduating College.
E.J. Smith - Your Survival Guy
Latest posts by E.J. Smith - Your Survival Guy (see all)
- If You’re a Highly Effective Person, We Should Talk - March 24, 2023
- What’s Happening to Charles Schwab? - March 24, 2023
- Prepare for the Predictable - March 24, 2023
- Is Vanguard Voting Against Your Political Beliefs? - March 23, 2023
- Call It the Difference between Normal and Crazy - March 23, 2023