According to the Wharton School, Joe Biden’s college loan forgiveness scheme will cost more than the $300 billion price tag. According to the business school, “debt cancellation alone will cost up to $519 billion, with about 75% of the benefit accruing to households making $88,000 or less.”
The school warned, “depending on future IDR program details to be released and potential behavioral (i.e., ‘non-static’) changes, total plan costs could exceed $1 trillion.” Yet even before Wharton’s astronomical price tag was released, people such as former President Barack Obama’s top economic advisor Larry Summers were blasting Biden’s bailout.
Summers said, “Every dollar spent on student loan relief is a dollar that could have gone to support those who don’t get the opportunity to go to college.”
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