In late June, the Supreme Court struck down President Biden’s illegal student loan “forgiveness” scheme – and gave his administration a swift kick in the ribs. Hours after the decision was handed down, the President emerged at a podium in the White House, flanked by Education Secretary Miguel Cardona, to announce his next attempt to pin the student loan tab on hardworking taxpayers. The President’s so-called “Savings on a Valuable Education (SAVE) plan” is as misleading as it is costly.
Back in September, the Congressional Budget Office estimated the proposed plan could cost up to $279 billion over the next decade. On Monday, the Penn Wharton Budget Model (PWBM) unveiled a new and jarring cost estimate showing that hardworking taxpayers can expect anywhere between $391 and $558.9 billion in inflationary debt to hit them like a bullet train.
The PWBM also highlights a particularly damning revelation: less than a quarter of student loan borrowers will ever fully repay their loans under this plan due to its grossly distorted calculation of income that’s interlocked with irresponsible loan “forgiveness” policies.
Forcing hardworking Americans to shoulder the costliest regulation in our nation’s history is utterly obscene. As a result, inflated college costs will become exacerbated and excessive debt balances will compound even further. The so-called “SAVE plan” is not a cure all or a saving grace like President Biden wants the American people to believe.
It comes as no surprise that hardworking taxpayers are tenderly nursing their jaws – the Biden administration has sucker punched them yet again.