Jump to content

The White House is zeroing in on its student debt action.


Recommended Posts

t_7854f03db8664ea1a5c0a3cfc35878c3_name_
WWW.WASHINGTONPOST.COM

Supporters of student debt cancelation have argued some estimates overstate the policy’s price-tag.

 

Quote

The White House’s plan to cancel student loan debt for tens of millions of American borrowers will cost roughly $400 billion, according to a new estimate released by Congress’ nonpartisan scorekeeper.

 

The scorekeeper also found that the White House’s plan to temporarily extend an existing pause on student loan payments would cost roughly $20 billion.

...

The Congressional Budget Office’s estimate excludes the White House’s simultaneous move to lower the monthly amount borrowers can be forced to repay as a percentage of their income from 10 percent to 5 percent. That policy is set to cost an additional $120 billion, according to estimates from the Committee for a Responsible Federal Budget, a D.C.-based think tank that has opposed Biden’s policy.

...

CBO found the policy change would result in a similar impact to annual cash flow to the federal government, but budget analysts typically assess the cost of a new program based on how it will alter the federal deficit in the long run. A conventional 10-year score of the budget would find the policy increases deficits by roughly $400 billion, because these policy changes are immediate, Goldwein said.

...

“CBO’s $400 billion cost estimate shows this administration has lost all sense of fiscal responsibility,” said Rep. Virginia Foxx (N.C.), the top Republican on the House Education Committee. “Rather than working with Congress to bring down college costs, President Biden has opted to bury the American people under our unsustainable debt.”

 

Quote

Senate Majority Leader Charles E. Schumer (D-N.Y.) and Sen. Elizabeth Warren (D-Mass.), who led the charge on the debt forgiveness policy, released a joint statement taking issue with the assumptions underlying the CBO analysis.

 

“It is clear the pandemic payment pause and student debt cancellation are policies that demonstrate how government can and should invest in working people, not the wealthy and billionaire corporations,” the pair said.

 

Some economists cautioned that opponents of the policy frequently overstate its price-tag. Marshall Steinbaum, an economist at the University of Utah, said his research suggests that more than 60 percent of outstanding student loans have rising balances over time — suggesting that many of them are not being paid off.

 

“A very large share of already outstanding student debt was not going to be repaid anyway, so I’m curious how the CBO will account for the fact that most student debt was already uncollectable,” said Steinbaum, who supports student debt cancellation, in an interview before the CBO’s release.

 

The Office Thank You GIF

Link to comment
Share on other sites

AA12pcfU.img?h=630&w=1200&m=6&q=60&o=t&l
WWW.MSN.COM

Education Department says that a subset of federal student loans owned by private lenders no longer qualify for relief.
Quote

In a reversal, the Education Department said on Thursday it would no longer allow borrowers who have federal student loans that are owned by private entities to qualify for the relief program. The administration had previously said those borrowers would have a path to receive up to $10,000 or $20,000 of loan forgiveness.

Brad Keselowski Win GIF by NASCAR

  • Guillotine 1
Link to comment
Share on other sites

  • 3 weeks later...

Like six separate courts int the past week agreed there was no standing to challenge this until this court ruled. I don't see how this country is remotely governable if every policy action results in a bazooka of legal challenges fired in all directions until they hit on a friendly court.

  • Halal 5
Link to comment
Share on other sites

48 minutes ago, Ricofoley said:

Like six separate courts int the past week agreed there was no standing to challenge this until this court ruled. I don't see how this country is remotely governable if every policy action results in a bazooka of legal challenges fired in all directions until they hit on a friendly court.

It’s just the beauty and majesty of the impartial and everlasting law

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...