A new government estimated the cost of the decision to pause federal student-loan repayments.
As student debt continued to be a big political issue, President Joe Biden was considering wide-ranging debt forgiveness.
TheGAO assigned the cost to the decision to pause repayments.
The policy was put in place by both the president and the vice president. It was a major factor in the long-term decline of the Department of Education's Direct Loan program.
The program was expected to generate $114 billion for the government over the course of 25 years.
The program is now estimated to cost $197 billion, according to the GAO.
Material changes to the loan system and new methods of estimating costs are some of the reasons why the cost estimate has increased by more than $300 billion.
They were concerned about the repayment pause that was due to end on August 31.
Many borrowers haven't made repayments and interest hasn't been accrued on their accounts.
The July 28 report came a month before Biden was expected to announce a decision on the issue of student debt forgiveness.
The White House Press Secretary said last week that he would make a decision by the end of August.
He has been under pressure from progressives to increase that figure. Biden said in April that he wouldn't do debt forgiveness.
Republicans are becoming more vocal in their opposition to the move.
All Rights Reserved © 2024
