Based in part on new data from the Congressional Budget Office, this piece shows: The estimated federal cost of student loans issued between 2015 and 2024 has increased by $340 billion – from a projected gain of $135 billion in the 2014 baseline to an expected loss of $205 billion in the 2024 baseline. Much of the cost increase can be explained by the expansion and increased enrollment in income-driven repayment (IDR). In forward projections, graduate school loans are now nearly as subsidized as undergraduate loans and make up half of the cost of newly issued student loans. Reforming graduate loans to be cost-neutral would generate over $100 billion in deficit reduction over the next decade.
In January, the House Education and Workforce Committee reported out the College Cost Reduction Act (CCRA), which would make several changes to the student loan and Pell Grant programs for a savings...
What is Reconciliation? How do Reconciliation Instructions Work? Can a Reconciliation Bill Add to the Deficit? What is the “Byrd Rule”? What are Other Restrictions on Reconciliation? How has Budget...
