May 02, 2024
President Biden’s continued student loan “cancellation”scheme not only incentivizes skyrocketing tuition but also punishes working-class taxpayers, exacerbating our nation’s debt and deficit crisis in the process.
A new analysis from the Committee for a Responsible Federal Budget (CRFB)projectsthat President Biden’s student loan cancellation plans could cost taxpayers a combined$870 billionto$1.4 trillion.[1]
Word on the Street:
ViaCRFB:
- “To put$870 billionto$1.4 trillionin further context, this range suggests the cost of recent debt cancellation is likely higher than:
- Allhistoric spending on higher education prior to the COVID-19 pandemic ($744 billion from 1962 to 2019)
- Allprojected education appropriations over the next decade ($935 billion from 2025-2034)
- The federal cost of offering universal pre-Kanduniversal affordable child care ($750 billion)
- The cost oftriplingthe Pell Grant program ($675 billion)”
The Bottom Line:
Make no mistake – President Biden is not “forgiving” loans; he’s transferring the debt from borrowers who willingly took out student loans onto the backs of working-class taxpayers who did not.
Here’s how President Biden unilaterally shifted the cost of higher education onto those who can least afford it:
- More than60 percentof Americans do not have a college degree.
- 87 percentof adults without student loans will be forced to pay for the13 percentwho do.
- 56 percentof all student loan debt is owed by the14.3 percentof individuals with graduate degrees.
More From the House Budget Committee on Biden's Student Loan Scheme:
In stark contrast,theHouse Budget Committee’s FY 2025 “Reverse the Curse” Budget Resolutionprotects taxpayer dollars and calls for ending current and future student loan bailouts.
ClickHEREfor Chairman Arrington’s statement when President Biden announced this student loan scheme.
ClickHEREfor Chairman Arrington’s statement when the Department of Education released its first set of draft rules for President Biden’s next attempt to cancel student loan debt.
ClickHEREto read about FAFSA Fumbles.
ClickHEREto read about Penn Wharton’s analysis of President Biden’s student loan bailouts.
ClickHEREfor the combined set of documents breaking down the costs of the President’s loan ‘forgiveness’ plans.
ClickHEREfor an overview of the Administration’s student loan forgiveness plan.
[1]This estimate does not include Biden’s $330 billion student loan bailout plan that was found unconstitutional by the U.S. Supreme Court last summer.
