The U.S. Department of Education's proposed rules for student loan forgiveness could cost taxpayers up to $600 billion, far more than the department estimated, according to budget watchdogs.
The Department of Education announced Friday another student debt relief effort.
The set of proposed rules, if finalized, would authorize loan forgiveness for about 8 million borrowers experiencing hardship.
If these rules are finalized as proposed, the Secretary of Education could waive up to the entire outstanding balance of a student loan when the Department determines a hardship is likely to impair the borrower's ability to fully repay the loan or render the costs of continued collection of the loan unjustified.
"President Biden, Vice President Harris, and I will not stop fighting to deliver student debt relief and create a fairer, more just, and more affordable student loan system for all borrowers." Maya MacGuineas, president of the Committee for a Responsible Federal Budget, called the department's plan irresponsible.
"The Biden Administration continues to unilaterally introduce costly and counterproductive student loan giveaways - but this one is particularly brazen," she said.
"Today's rule would practically grant the Secretary of Education unlimited loan forgiveness authority, creating a dangerous precedent that could lead to perpetual debt cancellation." The proposed rules would create two pathways to eliminate some student debt.
https://www.thecentersquare.com/national/article_9f9634c6-931d-11ef-a2a8-cf9ec2bc2a48.html
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