{"id":1976300,"date":"2023-07-18T14:36:02","date_gmt":"2023-07-18T18:36:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-student-bailout-may-cost-taxpayers-475-billion-penn-university-study\/"},"modified":"2023-07-18T14:39:54","modified_gmt":"2023-07-18T18:39:54","slug":"bidens-student-bailout-may-cost-taxpayers-475-billion-penn-university-study","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-student-bailout-may-cost-taxpayers-475-billion-penn-university-study\/","title":{"rendered":"Biden&#8217;s student bailout could cost taxpayers $475B: Penn University study."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbidens-student-bailout-may-cost-taxpayers-475-billion-penn-university-study%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1976300&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div \u2063class=\"post_content\">\n \u200c \u2063<\/p>\n<h2>The Cost\u2064 of \u200bPresident Biden&#8217;s \u2063Student Loan Repayment Plan<\/h2>\n<p> \u2062 <\/p>\n<p>A \u2062new\u200b <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-student-bailout-may-cost-taxpayers-475-billion-penn-university-study\/\" title=\"Biden's student bailout could cost taxpayers 5B: Penn University study.\">income-based student \u200bloan repayment \u2062plan proposed<\/a> \u200cby \u2062President\u2062 Joe Biden \u200ccould \u200chave a significant \u200dimpact\u200c on college \u200cstudents and \u200bcost a\u2063 staggering \u200d$475\u200d billion\u200d over \u2063the\u2062 next 10 years, according to\u2063 the University of Pennsylvania.<\/p>\n<p> \u200d <\/p>\n<p>The plan,\u200d known as &#8220;Saving \u200don A Valuable Education&#8221; \u200b(SAVE), \u2063aims to reduce \u200cmonthly payments\u2063 on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/republicans-attack-woke-politics-as-education-secretary-outlines-department-budget\/\" title=\"Republicans Attack \u2018Woke Politics\u2019 as Education Secretary Outlines Department Budget\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/5-reasons-making-taxpayers-pay-off-student-loans-is-a-rotten-idea\/\" title=\"5 Reasons Making Taxpayers Pay Off Student Loans Is A Rotten Idea\">student loans<\/a> based<\/a> \u2064on income, eliminate payments for those\u2064 earning \u200cminimum \u200cwage,\u2064 and\u2063 forgive \u2062all outstanding debt after 10 years\u2064 of repayment, as \u200dlong as the loan \u2062amount\u200c is $12,000 or\u200b less.<\/p>\n<p> \u200c <\/p>\n<p>While the\u200c Department of Education estimates the cost of the\u2064 SAVE\u2063 plan \u200dto be \u2063$138 billion over a decade, \u2063the \u200cUniversity \u2063of Pennsylvania&#8217;s Penn Wharton&#8217;s \u2064Budget\u200b Model\u200d predicts a\u200d much higher cost\u200b of\u200b $475 billion.<\/p>\n<p> \u2064 \u200b<\/p>\n<p>Of this cost, approximately $200 \u2062billion\u200b will come from \u200creducing payments on\u200d existing\u2063 student loans. Once the \u2062SAVE\u2062 plan takes\u200c effect next year,\u2064 the model \u200cpredicts that over\u200d half \u2063of the \u2064current loan volume \u2064will\u2064 switch \u200bto \u2063this \u2062new plan.<\/p>\n<p>The remaining \u2064$275 billion will\u2062 come \u200cfrom\u2063 reduced \u200bpayments\u200c on\u200b approximately \u200b$1 trillion in \u200cnew loans\u200c that are expected \u2063to be \u2062extended over the\u200d next decade.<\/p>\n<p>\u2064  \u2064<\/p>\n<p>However, the\u200d Budget\u2062 Model warns that\u2064 the increased generosity \u200bof the\u2063 proposed income-driven repayment plan\u2062 may\u2062 incentivize\u2062 future\u200d student borrowers to take on more <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">federal student loan debt<\/a>, shifting the college financing pattern \u2064towards more\u2064 borrowing instead \u2064of paying out-of-pocket.<\/p>\n<p>The estimated cost \u200dof \u2062the SAVE\u200c plan ranges \u2062from\u2064 $390.9 billion\u200c to \u200ba maximum\u200d of $558.8 \u2063billion.<\/p>\n<p>\u200b \u2062 <\/p>\n<h2>The SAVE Plan<\/h2>\n<p>  \u2063<\/p>\n<p>The \u200bSAVE plan \u200cwas initially announced last year but was overshadowed by another\u2063 plan \u200dfrom the Biden administration \u200bthat aimed\u2062 to forgive\u200d the debt\u2062 of nearly 40 \u200cmillion \u200cstudent\u2063 loan borrowers \u200cat a cost of $800 billion.<\/p>\n<p>After the U.S. Supreme Court \u2063struck down the \u2064$800 \u2063billion \u200dplan, the White\u2063 House \u200brefocused \u2064its attention on \u200bthe SAVE plan. \u2062The Education Department is \u200dnow promoting it \u2062as the\u2063 &#8220;most affordable payment plan ever.&#8221;<\/p>\n<p> \u200b <\/p>\n<figure \u200cid=\"attachment_1774492\" style=\"width: 533px\" \u200dclass=\"wp-caption alignnone\">\n\u200b    \u2064<a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2015\/09\/152599446.jpg\"><br \/>\n \u200b  \u2063<figcaption\u200b class=\"wp-caption-text\"><noscript><\/noscript><\/figcaption>\u200b   <\/a><br \/>\n  \u2062  Students protest the rising\u2062 costs of student loans for\u200d higher education\u2063 on Hollywood Boulevard\u2063 in \u200cLos Angeles, Calif., \u2063on Sept. 22, \u20642012. (David McNew\/Getty Images)<br \/>\n  <\/figure>\n<p>\u200d  <\/p>\n<p>&#8220;The SAVE \u200bPlan calculates\u200d your monthly\u200b payment amount based on \u2062your\u2064 income \u2064and family size.\u200c Starting this summer, \u200dif you\u2019re \u2063making\u200c $32,800 \u2063a year\u200c or \u2062less (which is \u200croughly \u200b$15\u200d an hour),\u200c your <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/food-stamps-final-direct-payment-worth-average-of-188-for-georgia-residents-to-go-out-in-five-days\/\" title=\"Georgia residents will receive a final direct payment of 8 in food stamps within five days.\">monthly\u2063 payment<\/a> will be $0. If you\u2019re making more than that, you \u2062will \u200dsave at \u2062least $1,000 \u200ca\u2064 year,\u200b compared\u2062 to other IDR plans,&#8221; explains the plan.<\/p>\n<p>Beginning next\u200c summer, \u200cborrowers \u200bon the\u2064 SAVE plan with undergraduate loans may\u2063 see their\u200d repayments reduced from 10 percent\u200d to 5 percent of their income.<\/p>\n<p> \u2064 <\/p>\n<p>Borrowers with both undergraduate\u200b and graduate\u200c loans \u2063will also benefit\u2062 from the plan, \u2063but further\u200d details are yet \u200cto \u200bbe announced.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>President Joe Biden&#8217;s income-based student loan repayment plan, known as the &#8220;Saving on A Valuable Education&#8221; (SAVE) scheme, may incur a $475 billion expense over a decade, warns the University of Pennsylvania. This initiative could inadvertently promote increased borrowing among college students, as it seeks to lower monthly payments based on income.<\/p>\n","protected":false},"author":186,"featured_media":1976301,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-1976300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1976300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/186"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1976300"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1976300\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1976301"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1976300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1976300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1976300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}