The$ 84 billion is in addition to his originally stated SAVE program, which the organization believes could cost payers$ 475 billion, according to the Penn Wharton Budget Model, which released its study on Thursday.
In addition to the$ 475 billion that we originally estimated for President Biden’s Saving plan, PWBM said in its description of the research that” we estimate that President Biden’s just announced’ New Plans’ to give relief to student borrowers will price$ 84 billion, in addition to the$ 475 billion that we estimate. Additionally, borrowers in households with incomes higher than the Protect program coverage receive some debt relief from the New Plans.
The main tenets of Biden’s new strategy are waiver of accrued and focused attention for millions of borrowers, eliminating student debt for those who have repaid their loans for at least 20 years, assisting borrowers who are experiencing hardship in paying back their loans, immediately discharging debt for those who are not qualified for loan forgiveness under SAVE, closed school discharge, or another forgiveness programs, and aiding borrowers who have enrolled in low-financial-value programs or institutions.
At a cost of$ 57.75 billion, the majority of the cost will be incurred by waiving millions of borrowers ‘ accrued and capitalized interest. The SAVE plan’s fourth provision already includes the fourth provision, with the remaining portion accounting for the majority of the remaining two provisions.
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The Biden administration claims relief for 25 million to 30 million borrowers, but PWBM estimated that the new plan will provide about 17.2 million borrowers with positive debt relief.
The cost is likely to cause more Republican opposition to the plan, which Biden had made a major campaign promise.
