Today, Congressman Warren Davidson (R-OH) led a letter to the Director of the Congressional Budget Office (CBO) requesting an updated and accurate analysis of the estimated cost of the federal student lending programs.
The letter reads, “CBO miscalculated the cost of the Healthcare and Reconciliation Act by $503 billion, before factoring in President Biden’s student loan bailouts. Congress may not have passed this bill had CBO appropriately scored it. Congress needs an updated, accurate, and transparent estimate from CBO so it can fix our student lending programs going forward. It is imperative that Members of Congress, and the public, have access to disclosures on the data, programs, models, assumptions, and other details that CBO uses to estimate the cost of legislation. This transparency is necessary to ensure accuracy and confidence in CBO’s reports.”
In March 2010, the CBO estimated the federal student lending program would save taxpayers $40 to $62 billion from 2010 through 2020. In May of 2019, the CBO produced a new projection that showed the program would cost taxpayers $31.5 billion over the next decade, but an internal analysis by the Department of Education in 2020 determined taxpayers would be left with the significant expense of $435 billion.
“Due to CBO’s miscalculation, taxpayers are on the hook for an unexpected $435 billion. Biden’s call to cancel student loan debt and appease the radical Left only shifts more cost onto hardworking Americans. Congress needs an accurate analysis so that we can fix the federal student loan program going forward,” said Rep. Davidson.
Original source can be found here.
Alerts Sign-up