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[quote=Anonymous]You people don’t understand the CBO score. It doesn’t cost $400 Billion this year and won’t cost that much over 10 years either. It removes a $400 Billion accounting asset from the ledger, the amount of debt owed to the government that will be forgiven, but those loans would be repaid over a decade or more, not immediately, and a lot of them would be forgiven at least in part under current rules, but CBO has to assume that debts on the books will all be paid. The cost of loan forgiveness this year would be relatively minor to the economy and the federal budget because if the suspension is lifted everyone without total forgiveness will start paying again, even those with partial forgiveness.

Also CBO is only counting the revenue lost from loan payments, and not the economic activity of the borrowers spending that money elsewhere in the economy. When taxes are cut everyone accepts that the tax savings will be spent or invested elsewhere in the economy. The same is true for loan forgiveness. The money doesn’t disappear, it just doesn’t go to the government.[/quote]

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