CBO Releases Long-Term Analysis of Ryan's Proposal

In response to Representative Paul Ryan's (R-WI) FY 2012 Budget proposal, CBO has released a long-term analysis of the proposal. The analysis, which includes the numbers reflected in Ryan's proposal released today, also goes into the policy effects of the various reforms he is offering and the long-term effects of his proposal.

Driving the long-term impact of Congressman Ryan's budget is a number of health care changes, including the block granting of Medicaid, the repeal of the coverage provisions of the Affordable Care Act, and the implementation of a premium support system for Medicare.

According to the analysis, debt would fall to 64 percent of GDP in 2030, 48 percent in 2040, and 10 percent in 2050. This is a substantial improvement from current law and from current policy.

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Read CRFB's analysis of Congressman Ryan's proposal here.

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Recent Student Loan Actions Forgo $5 Billion in Repayments

The Department of Education announced last week a six-month extension of automatic forbearance to all borrowers enrolled in the SAVE income-driven repayment plan while it is being challenged in courts, adding that they will forgive any unpaid accrued interest during that time. We estimate that the Department of Education is forgoing roughly $500 million of repayments per month, meaning that this extension would result in $3 billion in forgone payments, bringing the total amount up to $5 billion. Importantly, much of those payments will instead be paid later, and so the net cost would be some fraction of that $5 billion.

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