When the federal government began directly lending to students that needed loans to finance higher education, they expected the venture would generate billions of dollars in income. However, over 20 years later that estimate hasn’t come to fruition. Instead a new report shows federal student loans are expected to cost the government billions.
The Government Accountability Office (GAO) published a bleak report that found after programmatic changes, including the current moratorium on payments for all federal student loans, and economic factors were taken into account, federal direct student loans will cost the federal government $197 billion.
