U.S. Taxpayers Face $200 Billion Bill From Student Loan Forgiveness Plans

The student loan bubble continues to inflate.

It’s now a $1.64 trillion problem that has increased over 120% since 2009. Student loan balances equate to 7.6% of GDP. That’s up from 5.1% a decade ago.

Much of the millennial generation has insurmountable student debts that have prevented them from family formation, home buying, and growing savings. This has severely weighed on the economy, but it appears relief could be on the way, paid for by the U.S. taxpayer.

The Congressional Budget Office (CBO) said this week that a $207.4 billion student loan forgiveness program would help Americans who are unable to pay their debt through 2029.

The CBO said borrowers who attend graduate or professional schooling would benefit from the program the most.

The government is expected to forgive $167.1 billion of the total amount, and this includes the original loan amount and unpaid interest for borrowers over the period.

The CBO estimates that the government will forgive $40.3 billion on new loans made from 2020-2029, or about 21% of the original amount.

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