Biden’s New IDR Plan: A Game of Pin the Tab on the Taxpayer
July 19, 2023
In late June, the Supreme Court struck down President Biden’s illegal student loan “forgiveness” scheme – and gave his administration a swift kick in the ribs. Hours after the decision was handed down, the President emerged at a podium in the White House, flanked by Education Secretary Miguel Cardona, to announce his next attempt to pin the student loan tab on hardworking taxpayers. The President’s so-called “Savings on a Valuable Education (SAVE) plan” is as misleading as it is costly.
Back in September, the Congressional Budget Office estimated the proposed plan could cost up to $279 billion over the next decade. On Monday, the Penn Wharton Budget Model (PWBM) unveiled a new and jarring cost estimate showing that hardworking taxpayers can expect anywhere between $391 and $558.9 billion in inflationary debt to hit them like a bullet train.
The PWBM also highlights a particularly damning revelation: less than a quarter of student loan borrowers will ever fully repay their loans under this plan due to its grossly distorted calculation of income that’s interlocked with irresponsible loan “forgiveness” policies.
