Source: CNN
By Tami Luhby,
Read more: https://www.cnn.com/2022/08/26/politics ... index.html
(CNN) President Joe Biden's student loan debt relief plan is expected to help mainly working and middle class borrowers, an updated report from an influential research group found. That's a shift from its earlier projection that more higher-income borrowers would benefit from basic loan forgiveness.
About 75% of the benefit will go to households making $88,000 or less per year, according to the Penn Wharton Budget Model analysis released Friday.
The three-part relief package could cost up to $605 billion over 10 years, though the price tag could exceed $1 trillion depending on how the proposed income-driven repayment program is actually set up and how many people participate, Penn Wharton found. That's substantially higher than its initial estimate of a less comprehensive debt relief plan.
The revised report takes into account the plan's provision that would forgive up to $20,000 of debt held by those who qualified for Pell grants as undergraduates, as well as the measure to forgive up to $10,000 for those who did not receive such grants.