President Joe Biden’s latest student loan scheme will cost taxpayers $475 billion dollars over the next decade, according to a respected model of the federal budget.
The Penn Wharton budget model estimated Monday evening that President Biden’s new Income-Driven Repayment Plan will cost nearly half a trillion dollars. About $200 billion of that cost will come from payment reduction for the $1.64 trillion in loans already outstanding in 2023. Another $275 billion of costs comes from reduced payments for about $1.03 trillion in new loans that we estimate will be extended over the next 10 years.
The maximum estimate of the costs of Biden’s student loan scheme is $558 billion. The minimum estimate is $339 billion.
When the Biden administration announced the program it said $39 billion would be “forgiven” for 804,000 Americans. As the Penn Wharton figures demonstrate,…