GAO: Student Loan Cost Projections Doubled; Flawed Estimates Lack Transparency

The Government Accountability Office (GAO) recently released the results of an extensive investigation requested by Senator Mike Enzi (R-WY), Chairman of the Senate Budget Committee, on the cost projections of the Income Driven Repayment (IDR) plans administered by the Department of Education. GAO’s report shows that the current cost projections for IDR plans are tens of billions higher than original estimates. GAO also found that the Department of Education used flawed data to estimate program costs, which is expected to result in massive loan forgiveness of more than $108 billion.

“At a time...