President Joe Biden’s new student loan forgiveness plan would cost $84 billion if implemented, a new analysis found.
According to the Penn Wharton Budget Model, which released its analysis Thursday, the $84 billion is in addition to his previously stated SAVE plan, which the organization estimates could cost taxpayers $475 billion.
“We estimate that President Biden’s recently announced ‘New Plans’ to provide relief to student borrowers will cost $84 billion, in addition to the $475 billion that we previously estimated for President Biden’s SAVE plan,” PWBM said in its summary of the analysis. “Moreover, some debt relief in the New Plans accrues to borrowers in households with income more than the SAVE plan coverage.”
Biden’s new plan contains five main provisions: waiving accrued and capitalized interest for millions of borrowers; eliminating student debt for borrowers in repayment
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