Is this the right thing to do for a relatively few Americans when our current federal deficit is $1.2 trillion a year?
Including the Biden Administration’s new student debt cancellation plan, we estimate all recent student debt cancellation policies will cost a combined $870 billion to $1.4 trillion. That’s more than all federal spending on higher education over the nation’s entire history. The vast majority of this debt cancellation was put in place through executive actions under President Biden.
$620 billion of debt cancellation has already been implemented, including $275 billion from President Biden’s new Income-Driven Repayment (IDR) programknown as SAVE, $195 billion from cancelling interest as part of nearly 41 months of repayment pauses since March of 2020, and roughly $150 billion from a variety of more targeted actions such as discharging debt for those who attended closing schools and making it easier to cancel debt under existing loan forgiveness programs. The President’s newest debt cancellation scheme could cost an additional $250 to $750 billion based on our preliminary estimates.
Source: Committee for a Responsible Federal Budget
QUINNSCOMMENTARY 
ever wonder why these folks never criticize the colleges and universities for the rising tuition, room and board, and related costs? do endowments pay taxes? ever hear our friends in the White House and Congress propose taxing endowments –same reason why they never criticize the teacher’s unions like NEA and AFT–you don’t slap the hand that feeds you–as we have been saying for months this is a vote buying scheme as well as drawing down the Strategic Reserve to its lowest level ever.
didn’t the Supreme Court rule on student loan transfer? our friends who preach democracy then stand up and tell us they will defy the Court–what’s amusing is that Trump scores higher in polls, so I hear, as someone who is not a threat to democracy–the other guy is considered a bigger threat–maybe law-fare has reached the average person and they see what is happening.
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The student loan program has been a horrible program for over 20 years. It’s a handout to colleges not to students. There have been many students who have been paying every month for 10 – 15 years and still owe more than they borrowed. Moreover, for profit colleges which have the worst track record for graduation and job placement have receive a large share of that money. Just like Social Security, the student loan program should have been fixed 10 to 20 years ago but every year, congress and the president, no matter which party is in charge refuses to rework the program so it does more good and cost less. It’s interesting that the people howling the loudest about the student loan forgiveness never mention the Payroll Protection program government give away that cost us 757 billion dollars or the employee retention credit which costs us 475 billion. That’s a total 1.235 trillion given to businesses, with a huge chunk of it due to fraud.
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the federal deficit for FY 2024 is projected to be $1.9 Trillion – beyond stupid idea.
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What’s prudent got to do with it? It’s buying votes !
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