CBO says Biden’s student loan cancellation plan could cost $400 billion

ThatRobGuy

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CBO says Biden's student loan cancellation plan could cost $400 billion | CNN Politics

WashingtonCNN —
President Joe Biden’s plan to cancel up to $20,000 in federal student loan debt for low- and middle-income borrowers could cost $400 billion, according to a Congressional Budget Office report released Monday.

Biden announced the forgiveness plan in August, after facing mounting pressure from progressives to broadly cancel some student loan debt.

The Department of Education plans to release an application for the program in October. No student debt has been canceled yet.

The CBO, which conducts nonpartisan analysis for Congress, warned in the report that the estimates are “highly uncertain.”

The estimate relies on a number of assumptions, including how many eligible borrowers will apply, as well as what portion of the outstanding federal student loan debt may not have been repaid anyway over the lifetime of the loans due to other existing forgiveness programs, for example. Those projections depend in part on future economic conditions, the CBO said.
 

SavedByGrace3

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Yep... here we are, plumbers, cashiers, and factory workers are paying for the college education of the people who will one day be their bosses.
Remember in November!
 
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ThatRobGuy

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Yep... here we are, plumbers, cashiers, and factory workers are paying for the college education of the people who will one day be their bosses.
Remember in November!
Well lol, Let's be honest, a lot of the people who will need this sort of "student loan bailout" aren't going to be anyone's bosses...I'm thinking it'll be more of the people who picked non-viable majors, and are having a hard time finding any meaningful employment relating to their field of study once the reality sets in that spending on $60k on a degree in Journalism or Visual & Performing arts doesn't exactly have a stellar job placement rate.

STEM majors, Business Majors, and Nursing students will likely do just fine.
 
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ThatRobGuy

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We really need to drive down college tuition costs somehow. Having the government pay for it all isn't the answer. The costs will just keep going up, making yet another huge national debt sinkhole.
Correct...existing government grants (even before the promise of paying off the first 20k of it) have already created upward pressure on the pricing.

I don't have an issue with the Nordic model of make college tuition-free for those who go using tax revenue, but I'd also want the other parts of their educational model to go with it...primarily, having entry requirements being merit-based, and having strict caps/quotas for very specialized fields in the humanities & arts. We don't need 200k kids a year getting degrees in performing arts and journalism like we currently do...even in a flourishing economy, there aren't going to be even close to that many job openings in those fields.

I would say that the solution would be to take more of the Nordic approach to post-secondary education...which is to reserve lengthy expensive post-secondary endeavors for fields that actually need it, and embrace more 2-year degree programs as well as vocational training.


But that would require a cultural shift as the current social climate dictates that "has a 4-year degree in something" = "better"

One of the most 'telling' examples of the flawed mentality are places like Enterprise Rent-a-car, where the requirement is "must have a bachelors degree...doesn't matter what it's in, just that you have one"

And there are several other companies like that.

The way to lower the price of college is to lower the demand for college...which is attainable if people can get comfortable with the fact that the overwhelming majority of fields and professions don't really need a 4-year degree for a person to be qualified for it. I got a degree in Computer Science to get my job...I learned more in my first few months on the job than I did in the entire time I was in college...and would've done just fine with a few quick beginner courses prior to starting my first job.
 
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dqhall

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CBO says Biden's student loan cancellation plan could cost $400 billion | CNN Politics

WashingtonCNN —
President Joe Biden’s plan to cancel up to $20,000 in federal student loan debt for low- and middle-income borrowers could cost $400 billion, according to a Congressional Budget Office report released Monday.

Biden announced the forgiveness plan in August, after facing mounting pressure from progressives to broadly cancel some student loan debt.

The Department of Education plans to release an application for the program in October. No student debt has been canceled yet.

The CBO, which conducts nonpartisan analysis for Congress, warned in the report that the estimates are “highly uncertain.”

The estimate relies on a number of assumptions, including how many eligible borrowers will apply, as well as what portion of the outstanding federal student loan debt may not have been repaid anyway over the lifetime of the loans due to other existing forgiveness programs, for example. Those projections depend in part on future economic conditions, the CBO said.
That is inflationary, to forgive college loans. I had to pay off mine. First it was bail out non essential businesses and workers when Trump was president. Now it is pay off loans for those who did not succeed after graduating, did not graduate, or refuse to pay waiting to see if Biden’s government will pay. Should I ask the government to give me a free pension because I lack confidence in the equity and bond markets. They bailed out resort hotel owners who did not work for the money.
 
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SavedByGrace3

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Well lol, Let's be honest, a lot of the people who will need this sort of "student loan bailout" aren't going to be anyone's bosses...I'm thinking it'll be more of the people who picked non-viable majors, and are having a hard time finding any meaningful employment relating to their field of study once the reality sets in that spending on $60k on a degree in Journalism or Visual & Performing arts doesn't exactly have a stellar job placement rate.

STEM majors, Business Majors, and Nursing students will likely do just fine.
Yeah.... that too.:(
 
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disciple Clint

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CBO says Biden's student loan cancellation plan could cost $400 billion | CNN Politics

WashingtonCNN —
President Joe Biden’s plan to cancel up to $20,000 in federal student loan debt for low- and middle-income borrowers could cost $400 billion, according to a Congressional Budget Office report released Monday.

Biden announced the forgiveness plan in August, after facing mounting pressure from progressives to broadly cancel some student loan debt.

The Department of Education plans to release an application for the program in October. No student debt has been canceled yet.

The CBO, which conducts nonpartisan analysis for Congress, warned in the report that the estimates are “highly uncertain.”

The estimate relies on a number of assumptions, including how many eligible borrowers will apply, as well as what portion of the outstanding federal student loan debt may not have been repaid anyway over the lifetime of the loans due to other existing forgiveness programs, for example. Those projections depend in part on future economic conditions, the CBO said.
I just cannot find anything about this idea that I like and it is totally unfair.
 
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Trogdor the Burninator

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Yep... here we are, plumbers, cashiers, and factory workers are paying for the college education of the people who will one day be their bosses.
Remember in November!

Instead, let other countries that subsidise their college degrees train their students so they can replace Americans at those jobs. Yay foreign bosses!
 
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disciple Clint

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Instead, let other countries that subsidise their college degrees train their students so they can replace Americans at those jobs. Yay foreign bosses!
OR they could simply send them here where the tax payers pay for the education for illegal aliens
 
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Sophrosyne

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Some are saying that 400 billion is a low figure on Student loans. I saw one estimate of 469 to 518 billion and another that equate it to $2500 per tax payer.
The Wall Street Journay claims it could cost upwards of 1 Trillion
Biden’s Student-Debt-Forgiveness Plan May Cost Up to $1 Trillion, Challenging Deficit Goals

I don't particularly trust the government agency coming up with 400 million myself as it seems most of the agencies are corrupt these days they would fudge the numbers if they were not too favorable.
 
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