May 02, 2024
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  • President Biden’s Student Loan Scheme Could Cost Taxpayers $1.4 Trillion

    President Biden’s continued student loan “cancellation” scheme not only incentivizes skyrocketing tuition but also punishes working-class taxpayers, exacerbating our nation’s debt and deficit crisis in the process.

    A new analysis from the Committee for a Responsible Federal Budget (CRFB) projects that President Biden’s student loan cancellation plans could cost taxpayers a combined $870 billion to $1.4 trillion.[1]

    Word on the Street: 

    Via CRFB:

    • “To put $870 billion to $1.4 trillion in further context, this range suggests the cost of recent debt cancellation is likely higher than:
    • All historic spending on higher education prior to the COVID-19 pandemic ($744 billion from 1962 to 2019)
    • All projected education appropriations over the next decade ($935 billion from 2025-2034)
    • The federal cost of offering universal pre-K and universal affordable child care ($750 billion)
    • The cost of tripling the Pell Grant program ($675 billion)”


    The Bottom Line: 

    Make no mistake – President Biden is not “forgiving” loans; he’s transferring the debt from borrowers who willingly took out student loans onto the backs of working-class taxpayers who did not. 

    Here’s how President Biden unilaterally shifted the cost of higher education onto those who can least afford it:

    • More than 60 percent of Americans do not have a college degree. 
    • 87 percent of adults without student loans will be forced to pay for the 13 percent who do. 
    • 56 percent of all student loan debt is owed by the 14.3 percent of individuals with graduate degrees.

    Graph 2

    More From the House Budget Committee on Biden's Student Loan Scheme: 

    In stark contrast, the House Budget Committee’s FY 2025 “Reverse the Curse” Budget Resolution protects taxpayer dollars and calls for ending current and future student loan bailouts.

    Click HERE for Chairman Arrington’s statement when President Biden announced this student loan scheme. 

    Click HERE for Chairman Arrington’s statement when the Department of Education released its first set of draft rules for President Biden’s next attempt to cancel student loan debt.

    Click HERE to read about FAFSA Fumbles.

    Click HERE to read about Penn Wharton’s analysis of President Biden’s student loan bailouts.

    Click HERE for the combined set of documents breaking down the costs of the President’s loan ‘forgiveness’ plans.

    Click HERE for an overview of the Administration’s student loan forgiveness plan.  

    [1] This estimate does not include Biden’s $330 billion student loan bailout plan that was found unconstitutional by the U.S. Supreme Court last summer.