This latest expense is yet more evidence that sweeping student loan forgiveness will end up doing considerable economic harm.
While the incredible costs of the Biden administration’s federal student loan forgiveness plan are widely known, yet another expense of the program is stirring controversy: maintaining the online application for loan forgiveness is expected to cost nearly $100 million annually.
This latest expense—not included in the Congressional Budget Office’s recent estimate of the program’s cost to taxpayers—is yet more evidence that sweeping student loan forgiveness will end up doing considerable economic harm.
The program stands to be wildly expensive, with recent estimates from the Congressional Budget Office predicting that its cost will be $400 billion. However, as the Biden administration gears up to formally release the online application for loan forgiveness, other large costs are also becoming clear. Documents submitted by the Education Department to the Office of Management and Budget show that the department estimates it will cost $99,900,000 per year to maintain the application and the program’s associated communications through March 2024. According to the Department of Education, these costs are “related to development of website forms, servicer processing, borrower support, paper form processing and communications related to this effort.” – READ MORE