Price tag of Biden's student debt relief is about $400B, CBO says

[Yo_Mama_Been_Loggin]

Source: Politico

President Joe Biden’s plan to cancel large amounts of outstanding student debt for tens of millions of Americans will cost the federal government roughly $400 billion, according to a new analysis released Monday by the Congressional Budget Office.

The report by the nonpartisan congressional budget scorekeeper is the first full, official cost estimate of Biden’s student debt plan issued by a government agency. And it adds new fuel to the contentious debate over whether the loan relief to tens of millions of borrowers is justified or an irresponsible use of taxpayer dollars.

The CBO analysis examined how Biden’s loan forgiveness program would reduce revenue to the government and how much that would cost the government over the lifetime of the loans, which can stretch out over 30 years. It concluded the cost would be about $400 billion.

The Biden administration’s further extension of the freeze on student loan payments through the end of 2022 is expected to cost about $20 billion, CBO said.

Read more: https://www.msn.com/en-us/news/politics/price-tag-of-biden-s-student-debt-relief-is-about-400b-cbo-says/ar-AA12h3Fu

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We could have used that for better things like tax cuts for billionaires - Moscow Mitch

[Greybnk48]

1. What's that? One month of the military budget?

So what? University level education SHOULD be paid for by taxes.

[Probatim]

2. And every single penny those students saved from this will go right in to the economy.

And get turned several more times. Unlike tax cuts.

[Greybnk48]

5. Exactly!

Too many people with power want us to fail.

[Probatim]

6. I really think they want us to give up.

I think they're just as happy if we're doing ok but can't get excited to vote. That's an even bigger win for them.

[onetexan]

16. Bingo!!

[Jose Garcia]

24. Good thing that inflation isn't problem right now

[Probatim]

25. What does that mean? That their newfound "wealth" will cause further price spikes?

No one ever mentions that when gigantic tax cuts are handed out.

[rickford66]

3. It'll cost even more over a hundred years.

[keopeli]

7. Why 30 years? They usually calculate to 10 years. Biden said 24B the first year but the CBO says 21B

I'm always suspicious of accounting gimmicks. If it's 30 years, don't we pay a lot more in interest?

I'm all for student loan forgiveness. I just wonder about the numbers. They will certainly be used against us somehow.

[brooklynite]

8. Dupe

https://www.democraticunderground.com/10142974207

[Farmer-Rick]

9. TFG tax giveaway to the filthy rich

Was $1.5 Trillion. The tax give away was over 3 times bigger than helping students.

[Cheezoholic]

13. Besides that 1.7 trillion being EVERY year since 2017 why is the message not getting out

that this is 10 grand of relief for most, 20 grand for the rest. 10 to 20k dollars per student! It's RELIEF, not PAYING OFF a 100k dollar loan for a BS or something. And for many it's not going to pay their loans off. JFC all the media and repukes are saying is its PAYING OFF millions of folks student loans when the righteous paid theirs them selves. Well guess what, if the righteous still owe money and aren't making 3 times the median wage in this country they get 10 or 20k written off also.
. Mostly its paying the interest off for people that got sucked into the ITT Tech scams of the 80's and 90's. Fucking repukes own or are invested in those loan holding companies. That's why they're pissed. Makes me sick.

[Ray Bruns]

18. Yes. Prepare for repug screaming about the deficit in 3, 2, 1.

[Freethinker65]

10. Is that assuming all that have 10k(20k) forgiven would have paid entire loans back?

I believe there is incentive to keep making payments for any outstanding balances to be ensured payment is never more than 5% of income? Combined, these two features will result in more people paying back loans they otherwise would not have.
Government could very well end up getting back more in future repayments than without the forgiveness.

[IbogaProject]

11. Is that a Net Present Value

Or just a summation of 20-30 years of fake "costs"? If it's blocked out as an annual cost, then the economic multiplier of reducing the lower 80% of student losn debtors needs to be considered vs having them still pay much higher amounts. This will boost spending by those receiving relief.

[Cha]

12. "I AM CRYING & SHAKING AT MY DESK. Just got off the phone with my Mohela rep"

Link to tweet

I saw this tweet earlier.. apparently from someone who is a Recipient!

I AM CRYING & SHAKING AT MY DESK. Just got off the phone with my Mohela rep (after being on hold for 33 minutes) who confirmed that my student loans were forgiven through the Temporary Expanded Public Service Loan Forgiveness Program. Last week my principal said $50k, now it's 0!

[McKim]

14. I am thrilled....

I am thrilled with this great use of my tax dollars to help Latoya!!!!

[IbogaProject]

15. Me too

But this will help us all as she now has much more ability to spend to improve her life. Most if not all of that spending will be quick each month and likely mostly local. If we give someone who is wealthy extra they might not spend it this year and whenbtgey do finally spend it, it might go elsewhere or just to another wealthy person. This will do more economic growth than tax cuts for the top 10%.

[SomewhereInTheMiddle]

19. I am confused...

I thought the maximum forgiveness was $20k. How did she drop $50k in principal?

I wonder if she had multiple federal loans that we all forgiven at $10-20k each? Or is this an exaggeration for effect from either a supporter or opponent of the President.

I am sure there are other possibilities I am not seeing, but I would be wary of the latter explanation. Either intent could have negative consequences if believed uncritically.

I have two sons, one who just finished college and one who is in grad school. Both have loans. But not federal loans. I have no objection to forgiving federal loans. It is what the President can do without Congress. I would like to see more done for more students over time.

Several of you are comparing student loan to the defense budget. At first I thought that somewhat disingenuous. But then I remembered my own long-time arguments that education, perhaps especially higher education, must be a strategic priority for any nation, but particularly technological democracies.

Whether it is gaining or maintaining the lead in new discoveries and economies, or ensuring an informed electorate capable of and willing to think critically about national issues; education is essential to the long-term success of a nation. Encouraging and supporting quality education for all should be talked about with the same fervor as the other strategic elements of national importance, and funded at an equivalent level.

Or perhaps as a parent and educator I am somewhat biased.

[The Jungle 1]

22. Good for you. We need to help people.

I am 66, my wife and I both used TAA (Trade Adjustment Act) benefits. We both collected unemployment and got educated on a new skill. That money helped our family immensely and helped society. The help my nation provided kept us firmly in the middle class. I got electrical training and my wife became an LPN.
What Biden is doing is a great thing for our nation.
We need to control corporate welfare and help American citizens.

[Old Crank]

17. 30 years of the military budget

will be 30 trillion...
400 billion is cheap.

And the numbers didn't calculate any economic benefit. Just a cost estimate.

[Botany]

20. And that 400 Billion $s will roll over and stimulate the economy many times over in such ways as ...

... getting a new roof on the house, buying groceries, investing in a business, braces for the kids,
taking a vacation, or getting a puppy.



BTW Paul Ryan's blow job for the rich tax cut cost something like 2 trillion $s and that is every year too.

Republicans are pissed that this will help people and they will vote blue.

[The Jungle 1]

21. Just a little perspective for all.

State and local spending on corporate welfare has ballooned to at least $95 billion, up 200 percent in the past 30 years, and nearly twice as much as public funding for fire protection. Every state throws money at corporations, and while most don't report the true totals, the evidence that exists is deeply concerning. google
That is just state and local spending on corporate welfare.
We cannot call our economic system capitalism when our government is giving out this much money to corporations. I do not understand why corporate welfare is not a bigger issue with American citizens.

[NQAS]

23. An observation

The Afghanistan and Iraq wars cost more than 4 trillion dollars.

Here's some perspective from https://www.ehd.org/science_technology_largenumbers.php - arithmetic modifications are mine. I don't have a great track record with arithmetic on DU, but I think I'm right.

The height of a stack of 400,000,000,000 one dollar bills measures 27,260 miles, about 10% of the way to the moon.

The height of a stack of 4,000,000,000,000 (one trillion) one dollar bills measures 271,464 miles - all the way to the moon and partway back.

Make of that what you will. I'd rather money be spent on easing the burden of millions of Americans rather than putting American lives at risk and killing Afghans and Iraqis. I'm funny that way.