New Student Loan Rule To Cost $361 Billion; Study Shows Debt Forgiveness Benefits The Wealthy

A new rule proposed by the Department of Education could cost up to $361 billion over the next decade, while a separate study says President Joe Biden’s landmark student loan forgiveness plan benefits the wealthy.

The White House recently confirmed that more than 16 million people were approved for its student loan forgiveness program. Since October 2022, approximately 26 million people have applied for student debt relief. The borrowers will be approved for the aid if the initiative survives a legal challenge in the Supreme Court in February.

The administration’s program would forgive up to $10,000 for borrowers with federal student loans and up to $20,000 for Pell grants recipients. Individuals earning less than $125,000 and families with incomes below $250,000 would be eligible. In total, 95 percent of all student loan borrowers would qualify for forgiveness.

“More than 40 million Americans would qualify for one-time student debt relief,” the White House tweeted on Jan. 30.

“Nearly 90% of the relief going to out-of-school borrowers would go to those earning less than $75,000 a year. This relief is currently on hold because of lawsuits brought by opponents of the plan.” – READ MORE