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Originally Posted by Vermilion Villager
I am sorry you do not understand how this program works. Your home mortgage comparison is apples to oranges. "not much different" as you put it IS different. A bank is a for profit entity.
1. Not every student loan qualifies. 2. the student loan has to have a minimum of 20 years payback history. 3. 100% of the principal must have been repaid. 4. The Government BORROWS the money at a lower rate than it charged for the loan. Translation: the government made money on the loan (Profit). In these cases...20 years of profits! 5. The government is only forgiving future profit from the future interest.
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Student Loan Forgiveness will cost the USA $400 BILLION over 30 years, according to the Congressional Budget Office.
Biden's student loan forgiveness plan will cost $400 billion, budget office says : NPR
Not FOX news. Not CSPAN.