Still No Answer to the Question: Who Pays for Loan Forgiveness?
It has been more than a week, and there is still no coherent answer out of the Biden administration to the question of who will pay for student loan forgiveness, which may cost Americans anywhere between $300–500 billion by the time it’s all done.
For background, the White House announced, on Aug. 24, 2022, that individual borrowers earning less than $125,000 ($250,000 for married couples) will be eligible for up to “$20,000 in debt cancellation to Pell Grant recipients … and up to $10,000 in debt cancellation to non-Pell Grant recipients.” Many voices on both sides of the political aisle have challenged the wisdom of the program, and asked the reasonable question of how this will be paid for….