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Student Loan Forgiveness: Could Biden’s Plan To Lower Payments Lead to Further Debt?
By Laura Gariepy,
Although well-intentioned, President Joe Biden’s proposed changes to the income-driven repayment (IDR) plan REPAYE may cause some borrowers to take on more educational debt than they would have previously. The Congressional Budget Office (CBO) recently estimated a 12% increase in student borrowing should the modified plan get implemented.
The proposed plan may be more costly than anticipated for taxpayers, too. The CBO projects that the new IDR plan’s price tag will be nearly double the initial estimate of $138 billion. Over the next ten years, Americans may foot the staggering bill of $230 billion (or more!).