Good article in WSJ today:
http://archive.is/Hoj9R
http://www.wsj.com/articles/u-s-to-forgive-at-least-108-billion-in-student-debt-in-coming-years-1480501802
Go figure, the good 'ol gubmint didn't know how much this would cost before they implemented it ?
Seems like the writing is on the wall for future caps. Hopefully nobody will have the rug pulled out from underneath, but the potential for future medstudents to IBR their loans away might become substantially diminished. ?
http://archive.is/Hoj9R
http://www.wsj.com/articles/u-s-to-forgive-at-least-108-billion-in-student-debt-in-coming-years-1480501802
The report, to be released on Wednesday by the Government Accountability Office, shows the Obama administration’s main strategy for helping student-loan borrowers is proving far more costly than previously thought. The report also presents a scathing review of the Education Department’s accounting methods, which have understated the costs of its various debt-relief plans by tens of billions of dollars.
Education Department data show that most borrowers with high debt balances have attended graduate school. Roughly 8 million borrowers are currently in default on their loans, most owe under $10,000, government data shows. But Wednesday’s report suggests the average balance of borrowers in income-driven repayment plans is nearly $67,000.
President Obama has called for capping how much debt an individual can have forgiven, but Congress hasn’t acted on the proposal.
The GAO said it could take 40 years to know full costs of the programs.
Go figure, the good 'ol gubmint didn't know how much this would cost before they implemented it ?
Seems like the writing is on the wall for future caps. Hopefully nobody will have the rug pulled out from underneath, but the potential for future medstudents to IBR their loans away might become substantially diminished. ?
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