According to a new financial study, President Biden’s new repayment plan for federal student loans could cost the government $475 billion over the next decade.
That figure would surpass the $400 billion cost of the debt forgiveness plan that the Supreme Court rejected last month.
The president’s new repayment plan caps payments for undergraduate loans at 5 percent of the borrower’s income.
And after a borrower has made payments for either 10 or 20 years, any remaining balance would be forgiven.
