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Obamas Student Loan Program Is a Windfall for the Rich Study Says
Obama
So who picks up the cost of forgiven debt?
Taxpayers? Last year the outstanding student debt reached 1 trillion dollars...
.Jason Delisle and Alex Holt have published a paper examining the effects of Obama's new proposal and the results are not promising.
The study found that under the new IRB rules there is no extra cost in borrowing an additional dollar after a student loan debts exceed $60,000, regardless of salary.
"This is the more you borrow the more you can have forgiven," explains Delisle. "The provision doesn't really have any safeguard so that someone earning a substantial income wouldn't be disqualified from getting loan forgiveness."
For example, a law school student with $120,000 in debt and a starting salary of $65,000 might have $160,000 forgiven after 20 years.
"On the one hand you have the Obama administration talking about the spiraling cost of tuition and that they have a plan to keep tuition low and stop the growth or slow the growth, but this goes in a completely different direction," Delisle notes
Obama
So who picks up the cost of forgiven debt?
Taxpayers? Last year the outstanding student debt reached 1 trillion dollars...