White House announces new student loans moves and defends high cost to taxpayers
By
Haisten Willis
April 12, 2024 5:00 am
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The White House and Department of Education announced that another $7.4 billion in federal student loans owed by 277,000 borrowers will not have to be repaid, bringing the total to $153 billion in forgiven student loans announced since last summer.
“Thanks to all the actions taken by the Biden administration, nearly 4.3 million borrowers have been approved for debt cancellation,” press secretary Karine Jean-Pierre said on a call with reporters.
While the White House wants to see that number continue to rise, any debts that loanees do not repay fall on taxpayers. In addition to the $153 billion in loan write-offs, the Department of Education has announced the Saving on a Valuable Education, or SAVE, plan to drastically reduce the amount that future borrowers will have to repay.
The Washington Examiner asked about the cost of that program, which the Penn Wharton Budget Model estimates will cost taxpayers $475 billion over 10 years, and whether it’s an effective use of public money.
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https://www.washingtonexaminer.com/news/white-house/2963655/white-house-announces-new-student-loans-moves-and-defends-high-cost-to-taxpayers/
