What Is Blanket Forgiveness . a $10,000 blanket forgiveness would reduce outstanding federal student loan debt by $380 billion, but more than. by cutting off the ability to qualify for forgiveness by consolidating privately held ffels, perkins loans and. blanket debt forgiveness “creates a moral hazard for current and future student borrowers and is poorly targeted,” senator bill cassidy, republican of louisiana and a member of. President biden’s move, which has been held up by a court challenge, would mean that the student loan balances of millions of. brookings reported that forgiving all federal student loans would cost an estimated $1.6 trillion as of february 2021; a $50,000 blanket forgiveness would fully eliminate the balances of 38.3 billion holders in the first. blanket loan forgiveness—in any amount, and even with income caps—is a regressive policy; what you need to know about biden’s student loan forgiveness plan.
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