President Joe Biden’s latest student loan bailout “will cost a combined $870 billion to $1.4 trillion,” according to the Committee for a Responsible Federal Budget.
“That’s more than all federal spending on higher education over the nation’s entire history,” the group wrote in an April 29 report. “The vast majority of this debt cancellation was put in place through executive actions under President Biden.”
The report stated:
$620 billion of debt cancellation has already been implemented, including $275 billion from President Biden’s new Income-Driven Repayment (IDR) program known as SAVE, $195 billion from cancelling interest as part of nearly 41 months of repayment pauses since March of 2020, and roughly $150 billion from a variety of more targeted actions such as discharging debt for those who attended closing schools and making it easier to cancel debt under existing loan forgiveness programs. The President’s newest debt cancellation scheme could cost an additional $250 to $750 billion based on our preliminary estimates.
However, the cost of the new plan “remains uncertain,” the group wrote.
Currently, 17 states are suing to stop the latest student loan bailout from the Biden administration.
“President Biden does not have the authority to erase student debt without express congressional approval,” Missouri Attorney General Andrew Bailey’s office recently told The College Fix.
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