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Biden White House Hides True Cost of Student Loan Giveaway

August 31, 2022 — Biden's Student Loan Giveaway    — Blog    — Oversight    — Press Releases   

While touting their reckless student loan giveaway that will worsen inflation and drive college costs higher, the Biden Administration won’t say how much it will cost, Fox Business reports. Outside estimates put the cost as high as $1 trillion, according to the University of Pennsylvania Budget Model.


American taxpayers deserve to know how much it will cost them to pay off other people’s student loans.


  • “Economists say the lack of an estimation of costs and absence of any public analysis begs the question of whether the numbers were run at all for a plan estimated by fiscal watchdogs to cost anywhere between $500 billion to $1 trillion over the next decade,” according to Fox Business.”
  • “‘For the White House to put out a potentially trillion-dollar proposal without even releasing budget estimates, is grossly irresponsible to taxpayers,’ said Brian Riedl, a senior fellow in economics at the center-right Manhattan Institute. ‘This is one of the biggest federal initiatives of the past couple of decades, and we still don’t know what it’s going to cost.’”
  • “Ben Ritz, a budget and fiscal policy expert at the center-left Progressive Policy Institute, said: ‘It doesn’t reflect well on the administration. Even if they did one and didn’t release it looks bad, but regardless, the result is that no one really knows how much this is going to cost.’”
  • “‘I don’t know which is worse, releasing a gigantic plan without having any sense of how much it costs or knowing how much it costs and not telling people,’ said Marc Goldwein, the senior policy director at the nonpartisan Committee for a Responsible Federal Budget (CRFB). ‘I really don’t know which is worse.’”


Ways and Means Republican Leader Rep. Kevin Brady (R-TX) warned in a recent interview, “I don’t think it passes [legal] muster, but I worry the money will already be substantially out the door.”


Key Background:


Student loan forgiveness is a giveaway to highly educated college grads.

  • As the Biden Administration has blue-collar taxpayers bail out people earning six figures with multiple degrees, at least 59 percent of Americans worry the plan will worsen inflation, according to a new CNBC poll.


President Biden’s student loan giveaway is a massive transfer of wealth.

  • Even former Obama-Biden top economic advisor Larry Summers issued a warning that Biden’s mass student loan giveaway will worsen inflation. “Student loan relief is not free. It would be paid for. Part of it would be paid for by the 87 percent of Americans who do not benefit but lose out from inflation,” Summer said.”


READ: Analysis: Biden’s Student Loan Giveaway Would Benefit Highest Earners Most


Pursuing mass student loan forgiveness ignores the real problems most Americans are facing.

  • Forgiving $10,000 of student loan debt per person does nothing to bring down inflation, and will only exacerbate the rising cost of higher education rather than address it.
  • Student loan debt forgiveness will create the expectation of future debt forgiveness and will incentivize students to borrow more not less.