Summary: We estimate that President Bidens recently announced New Plans to provide relief to student borrowers will cost $84 billion, in addition to the $475 billion that we previously estimated for President Bidens SAVE plan. Moreover, some debt relief in the New Plans accrues to borrowers in households with income more than the SAVE plan coverage.
Key Points
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President Biden recently announced five main provisions to provide student loan debt relief. Some of provisions are already mostly covered by President Bidens SAVE plan introduced in 2023. Some provisions, however, are more incremental to the SAVE plan, including one provision—the forgiveness of longer-term debt—that expands eligibility to higher-income households.
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Read the full article at: https://budgetmodel.wharton.upenn.edu/issues/2024/4/11/biden-student-loan-debt-relief