President Joe Biden's new plan to erase student loan debt after the Supreme Court blocked his initial plan could cost around $475 billion, according to economists at the University of Pennsylvania and reported by Washington Free Beacon. The Court last month overturned Biden's order to give borrowers $10,000 to $20,000 in onetime student debt forgiveness and said the president overstepped in his powers and circumvented Congress's power to make laws regarding spending. The administration quickly moved to roll out an alternative plan. Biden unveiled the Saving on Valuable Education (SAVE) plan. Proposed by the Education Department, SAVE would bring down payments by thousands of dollars over the life of many people's loans. A single person making less than $32,805 a year would see their monthly payment go to $0 under the policy. That plan, which is set to take effect in July 2024, could cost an estimated $475 billion over the next decade, according to the Penn Wharton Budget Model. The model shows that the cost could even be tens of billions of dollars higher. The Supreme Court's 6-3 decision that overturned Biden's first attempt at student debt forgiveness spared the U.S. roughly $300 billion in spending. Biden's Education Department had estimated the debt relief would cost $30 billion a year for the next decade.
