What’s $300 billion between friends?
A new report from the Government Accountability Office details a breathtaking discrepancy between what the federal government claimed the student loan program would generate, and what it actually costs taxpayers. As GAO explains:
“Although the Department of Education originally estimated federal Direct Loans made in the last 25 years would generate billions in income for the federal government, its current estimates show these loans will cost the government billions.
That’s right, instead of “making” $114 billion for taxpayers as the Department of Education originally claimed, the federal student loan program actually costs taxpayers $10 billion annually, costing $197 billion since 1997–a $311 billion discrepancy.
To put a finer point on it, GAO found that federal student loans were “originally estimated to generate $6 in income per every $100 disbursed.” Instead, they’re “expected to cost the government almost $9 for every $100 disbursed.” Whoops.
How did the Department of Education get it so wrong? How is it they could claim student loans would bring in more than $100 billion in revenue for the federal government, when in reality they cost taxpayers nearly $200 billion?
What accounts for this massive miscounting?
so typical of the most highly-educated amongst us!
Whoops, recently equifax screwed over 200 MILLION folks credit scores. So many couldnt qualify for loans. Equifax said sorry, it was an accident.
Really u bunch of idiots? Used to be someone makes a huge mistake you were FIRED! Today its we are sorry for the accidental mistake.
SMH
It wasn’t a mistake they just got caught.