Student Loan Forgiveness Burdens Each Taxpayer with $2,500 According to Research

When President Joe Biden introduced a sweeping student loan forgiveness program, it was met with mixed responses.

Many people celebrated it as a way to free a shackled generation from unbeatable debt, unchaining them from predatory loans with exorbitant interest rates.

Others worried about where the money to forgive their debt would come from. Because, as everyone knows, money doesn’t just appear.

A new research study from the National Taxpayers Union, a fiscally conservative advocacy group, suggests that each taxpayer could end up with a burden of $2,500 to support the loan forgiveness program.

The total is based on the assumption that policymakers must make up for the total amount through tax increases, spending cuts, borrowing, or a combination of the three.

Those with the highest incomes would likely face the most significant burdens, with the responsibility phasing out the smaller your yearly income. Low-income taxpayers (less than $50K per year) could only be on the hook for around $190 each. Those with incomes between $50K and $75K could be on the hook for $1,040. Those between $75K and $100K could be on the hook for $1,774, and those between $100K and $200K could be $3,791.

It doesn’t mean that taxpayers would owe an additional $2,500 per month, but the impact could be felt in a variety of ripple effect ways if policymakers decide they have to balance the shortfall.

Critics call the program “shifting one kind of borrowing to another.”


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