An eye-popping analysis just released by Penn-Wharton:
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 75% of the benefit accruing to households making $88,000 or less. Loan forbearance will cost another $16 billion. The new income-driven repayment (IDR) program would cost another $70 billion, increasing the total plan cost to $605 billion under strict “static” assumptions. However, depending on future IDR program details to be released and potential behavioral (i.e., “non-static”) changes, total plan costs could exceed $1 trillion.
A trillion dollars is an enormous sum of money — it’s more than $6,000 per taxpayer.
One trillion dollars — $940 billion to be precise — was the Congressional Budget Office’s official ten-year cost estimate of Obamacare when Congress was debating the massive expansion of government in 2010. Now, President Biden is possibly taking that much money from U.S. taxpayers with a lawless stroke of a pen to provide a bailout that will overwhelmingly benefit Democratic voters a couple months before an election.