Biden’s Student Bailout May Cost Taxpayers $475 Billion: Penn University Study

Biden’s Student Bailout May Cost Taxpayers $475 Billion: Penn University Study
President Joe Biden announces student loan relief with Education Secretary Miguel Cardona (R) in the Roosevelt Room of the White House in Washington, on Aug. 24, 2022. Olivier Douliery/AFP via Getty Images
Naveen Athrappully
Updated:
0:00

President Joe Biden’s proposed income-based student loan repayment plan could cost $475 billion over a period of 10 years and end up encouraging “more loan borrowing” among college students, according to the University of Pennsylvania.

Mr. Biden’s “Saving on A Valuable Education” (SAVE) scheme aims to reduce the income-based monthly payments on student loans by half, remove monthly payments for individuals earning minimum wage, and forgive all outstanding debt on student loans once the borrower pays for 10 years, provided the loan amount is $12,000 or less.

Naveen Athrappully
Naveen Athrappully
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Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.
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