Costs for new Biden student loan handout plan could cost up to $1 trillion, one analysis finds
depending on whether existing and new students are included," the analysis read. "About 75% of the benefit falls to households making $88,000 or less per year."
Theses three components were estimated to cost the government $605 billion when evaluating the proposal with "strict ‘static’ assumptions" with rates based on existing income-based repayment plans. The review found that there would be "financial incentives for future borrowers to shift education financing toward more borrowing to take advantage of the five percent repayment threshold" detailed in the plan.
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