President Biden’s new student loan forgiveness plan includes three major components. We estimate that debt cancellation alone will cost up to $519 billion, with about two-thirds of the benefit accruing to households making $88,000 or less. Loan forbearance will cost another $16 billion. The new| Penn Wharton Budget Model
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. Moreover, some debt relief in the New Plans accrues to borrowers in households| Penn Wharton Budget Model
Don’t Let Colleges Keep Ducking Accountability on Student Loans| Minding The Campus
The U.S. Supreme Court struck down the Biden administration’s student loan forgiveness plan on Friday. The administration was attempting to forgive $10,000 of student loans for borrowers making less than $125,000 per year, and $20,000 for those who had received a Pell grant. The alleged authority for this action was a 20-year-old law that allows […]| Minding The Campus
The student loan payment pause is officially over, with payments resuming this month. What was the student loan payment pause? One of the policies enacted when the COVID-19 pandemic hit in March 2020 was a student loan repayment pause. During the pause, loan payments were not required, interest did not accrue, and involuntary collections […]| Minding The Campus
PWBM estimates that President Biden’s new Income-Driven Repayment Plan (the “SAVE” plan) will cost $475 billion over the 10-year budget window. This estimate includes the Supreme Court’s decision to invalidate President Biden’s Student Loan Forgiveness Plan and the Department of Education’s final re| Penn Wharton Budget Model
Editor’s Note: The following article was originally published by Cato Institute on September 3, 2024. With edits to match MTC’s style, it is crossposted here with permission. Note, this post updates last month’s post. The biggest changes from last month include: The Supreme Court has let the Eighth Circuit’s pause on the SAVE plan remain in place. Reworked the student […]| Minding The Campus
An analysis of the GAO data on the restart of student loan payments, including how many borrowers are paying their loans or still in deferment.| The College Investor
