New data shows that the Biden administration’s federal student loan forgiveness plan has jumped from
$15 billion in losses to $68 billion
Student loan debt can continue to increase on top of the already quadrupled amount, leaving taxpayers to foot the bill
New data released by the Biden Administration shows a significant increase in taxpayer losses for federal student loan cancellation. The student loan portfolio from the federal government originally estimated $15 billion but now has increased to $68 billion. The $53 billion increase comes from schools raising tuition prices and an increase of student enrollment.
The total amount of student loan debt that sits at $1.6 trillion was originally supposed to lose $15 billion according to projections reported last year. However, Biden’s new proposed $6 trillion budget has now been projected to lose $68 billion in federal student loan debt.
A few explanations for the quadrupled amount is due to the increase of tuition at various schools, and a higher number of students enrolling in college.
According to Forbes, the amount of student loan debt ranging from $400 billion to $1 trillion could be laid at the feet of federal taxpayers to pay for. The new $68 billion in projected losses can continue to increase over time, causing 80% of Americans who don’t have any student debt to foot the bill.
President Biden’s budget also calls for free preschool and free community college for two years, create universal preschool to 3- and 4-year-olds, as well as guaranteeing employees a $15 an hour wage. The free community college alone will cost $19 billion, and the universal preschool and $15 wage will cost $3.5 billion per fiscal year.
The proposed $6 trillion budget includes a 7% corporate tax increase, an additional $25 billion for the pandemic and programs that help in the reduction of racial inequality in the healthcare field. In addition, the budget includes $36 billion to fight climate change. There will also be an emphasis on federal research to create ways for the United States to no longer rely on fossil fuels and reach the goal of zero net carbon emissions by 2050.
Even with the crisis at the border, Biden’s budget doesn’t request any money for the wall at the border and instead calls for all remaining funds to be cancelled. Biden does, however, ask for $861 million to help with security, and $891 million for extra staff to help with the large volume of court proceedings.