The Congressional Budget Office has set forth the direct economic cost of the illegal Biden student loan giveaway in a letter to Senator Richard Burr and Rep. Virginia Foxx. The letter is posted online here. Following up, Republicans on the House Budget Committee issued
this press release. The press release highlights these key points:
• $400 billion cost to taxpayers from Biden’s decision to cancel student loan debt for families earning up to $250,000.
• $20 billion cost to taxpayers from Biden’s decision to extend the student loan repayment moratorium another four months.
○ $105 billion total cost to taxpayers from loan repayment moratorium since Biden took office.
• $4+ billion per month cost to U.S. taxpayers from loan and interest repayment moratorium.
The press release adds that the CBO score does not include a cost estimate of the changes the Biden administration also made to student loan income-driven repayment plans, “which other analyses have projected could cost American taxpayers over $450 billion.” The press release then provides this assessment of the distribution of the benefits and burdens of the loan and interest repayment moratorium:
• 87% of adults without student loans will be forced to pay for the 13% of adults who chose to take on loans.
• 70% of the benefit from canceling student loan debt will go to those in the top half of the income spectrum.
• 56% of all student loan debt is owed by the 14.3% of individuals with advanced degrees.
The argument served up by the administration to support the legality of the giveaway is a glorified joke.
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