From Wharton at UPenn, August 23:
Summary: We estimate that forgiving federal college student loan debt will cost between $300 billion and
$980 billion over the 10-year budget window, depending on program details. About 70 percent of debt
relief accrues to borrowers in the top 60 percent of the income distribution.
Key Points
- Vice President Harris recently stated that the Biden Administration will soon announce its policy on forgiving federal college student loan debt.
- We estimate that a one-time maximum debt forgiveness of $10,000 per borrower will cost around $300 billion for borrowers with incomes less than $125,000. This cost increases to $330 billion if the program is continued over the standard 10-year budget window. Eliminating the borrower income limit threshold produces a 10-year cost of $344 billion. Increasing the maximum amount forgiven to $50,000 per borrower increases the total cost to as much as $980 billion.
Introduction....
- Between 69 and 73 percent of the debt forgiven accrues to households in the top 60 percent of the income distribution.
....MUCH MORE (7 page PDF)
Earlier today:
"Larry Summers Says Student Loan Debt Relief Is Inflationary"
A Workingman's View of College Debt Forgiveness
Followup: "Larry Summers recommends a way for Biden to forgive trillions in student debt"
President Biden Announces Student Debt Cancellation Of Up To $20,000
And many more previously.
