Recent research shows that taxpayers would pay a staggering $559 billion for President Biden’s newest proposals to cancel student loans, with the highest beneficiaries being households with incomes above $300,000 per year.
Estimates from the Penn Wharton Budget Model put the cost to taxpayers at $84 billion over a decade, a billion for every year Biden’s been alive.
The 84-year-old president unveiled his income-driven repayment plan, the Saving on a Valuable Education (SAVE) Plan, last summer. It was predicted to cost $475 billion over a decade, and this new estimate adds to that.
For the fiscal years (FY) 2024–2034, the Congressional Budget Office (CBO) updated its February predictions on Tuesday.
Federal student loan programs are becoming increasingly expensive, according to the Congressional Budget Office (CBO). Over the next decade, taxpayers are expected to spend $393 billion, or $3,100 per household, on these programs.
President Biden’s programs to erase student loans account for more than a third of this total, or $140 billion.
The Congressional Budget Office (CBO) has released updated baseline estimates of taxpayer costs associated with the federal student loan program, and the results are less than desirable. According to new research by Preston Cooper, the most recent government projections indicate that taxpayers would spend $393 billion on the federal student loan program from 2024 to 2034, which works out to around $3,100 per family.
The projected losses on the $1.1 trillion in federal student loans that will be issued between 2024 and 2034 account for approximately $221 billion of that amount, according to the CBO’s official accounting rules. A loss of $278 billion may result from such loans if more thorough fair-value accounting methods were used. Mr. Cooper estimated that an additional $34 billion would be spent on the management of the various student loan schemes.
Old CBO estimates reveal that the cost of administering the student loan program has skyrocketed in the last several years. According to the agency’s projections, taxpayers would get $1.11 for every $1.00 in federal student loans in fiscal year 2024. Additionally, he mentioned that the most current estimates indicate that taxpayers would really lose twenty cents on the dollar due to loans that were given during this fiscal year.
These numbers have not gone down well with everyone.
