Federal Student Loans Cost Taxpayers Money
Liberals always think there is a free lunch. They never seem to understand that someone always has to pay.
Check it out:
The Congressional Budget Office has just released an assessment of what the Federal Direct Student Loan program will cost taxpayers using various accounting measures. As has been noted before, any student loan proposal should encourage CBO to employ fair value accounting (FVA) to determine the cost of student loans. At the same time, the Department of Education should be required to use the FVA analysis from CBO and adjust the loan rates accordingly going forward on an annual basis.
CBO’s new June 10th report, Options to Change Interest Rates and Other Terms on Student Loans, explains that, using Federal Credit Reform Act accounting practices “savings from the program will be $184 billion for loans made between 2013 and 2023.” But wait! There’s more!