Even if Biden's proposed one-time loan forgiveness program is ultimately rejected by the Supreme Court -- which will hear arguments in two cases on February 28 -- the new loan repayment plan could offer a benefit that's even more generous for some borrowers.
Many borrowers enrolled in the proposed income-driven repayment plan won't end up paying back the full amount they borrowed, according to a Urban Institute report.
Researchers estimated that 78% of bachelor's degree recipients with a typical amount of student loan debt of $31,000 would end up paying less than the full amount they borrowed over the lifetime of the loans.
For the typical borrower who earned an associate degree, with $13,000 in debt, researchers found that 89% would pay off less than the full amount borrowed.
While the Biden administration estimated that the proposal would cost nearly $138 billion over 10 years, independent researchers at the Penn Wharton Budget Model said it would likely cost much more -- between $333 billion to $361 billion over a decade. Other models estimated the cost to be over $500 billion. (note the "B" for billion!)
This means that millions of hardworking American taxpayers that never attended a college or a university will be paying the tuition of others. Now how fair is that?
Many borrowers enrolled in the proposed income-driven repayment plan won't end up paying back the full amount they borrowed, according to a Urban Institute report.
Researchers estimated that 78% of bachelor's degree recipients with a typical amount of student loan debt of $31,000 would end up paying less than the full amount they borrowed over the lifetime of the loans.
For the typical borrower who earned an associate degree, with $13,000 in debt, researchers found that 89% would pay off less than the full amount borrowed.
While the Biden administration estimated that the proposal would cost nearly $138 billion over 10 years, independent researchers at the Penn Wharton Budget Model said it would likely cost much more -- between $333 billion to $361 billion over a decade. Other models estimated the cost to be over $500 billion. (note the "B" for billion!)
This means that millions of hardworking American taxpayers that never attended a college or a university will be paying the tuition of others. Now how fair is that?
2 yr. ago
