by Art Benavides
Critics have targeted Biden’s student loan forgiveness initiative because they believe it will only raise tuition costs in the future.
Education Data Initiative Report In January 2022, in-state tuition and fees for a 4-year Michigan public college increased 3.31% over the past year. During the same period, the cost of out-of-state tuition and fees increased by 2.76%. Last year, the cost of room and board increased by 10.59%.
For the 2021-22 school year, medium Tuition and annual fees at public four-year colleges are $10,740 for in-state students and $27,560 for out-of-state students. Currently, the average annual tuition inflation rate is 8%.
“Joe Biden doesn’t forgive student loan debt, he subsidizes tuition. This one-time gift will only increase tuition for future generations,” said former CIA Director and US Secretary of State Mike Pompeo. say on twitter.
Several experts have said fox business Biden’s plan, which is expected to lead to higher college tuition, would actually exacerbate the inflation crisis.
“Assuming future loan forgiveness, students can feel free to borrow more, and colleges will tap into the additional borrowing by raising tuition fees,” said Brian Riddle, senior fiscal, tax, and policy researcher. economics at the Manhattan Institute. .”. “This is very similar to the fact that historically 60% of student aid growth has been due to tuition fee increases, which will be counted as future student aid increases, suggesting that 60% of student aid will be covered by tuition fee increases. gap.”
National Center for Education Statistics Data show that from 1980-81 to 2020-21, the cost of attending a four-year college in the United States – including tuition, fees, room and board, and adjustments for inflation – went from $10,631 per year to $29,033 per year,” the rep said. 173% growth over the past 40 years,” Bankrate said.
After adjusting for monetary inflation, tuition fees have risen 747.8% since 1963, according to the Education Data Initiative.
Federal Budget Committee estimate Biden’s cancellation plan will cost between $33 billion and $390 billion, and his comprehensive student debt plan will cost between $44 billion and $600 billion. The plan is said to be only a short-term solution. The commission said it would temporarily eliminate almost a third of the student debt portfolio, “but by 2028, total student debt will return to current levels within five and a half years.”
According to reports FoxNews, President Biden announced on August 24 that he would forgive $10,000 in federal student loan debt for borrowers earning less than $125,000 a year. For borrowers who went to college on Pell Grants, Biden’s forgiveness is up to $20,000 in student loan debt. Additionally, Biden extended the pandemic-era payment freeze through the end of December this year.
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