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Thursday, December 01, 2016

The US will forgive over $108 billion in student debt—wildly more than anyone thought

Barack Obama’s expansion of the student-loan repayment program, intended to help curb America’s $1.26 trillion pile of outstanding college debt, is proving a lot more costly.

In a 100-page report (pdf) released today, the Government Accountability Office said it’d forgive $108 billion in debt for the borrowers of government loans who have fulfilled their obligations under the Obama administration’s income-driven repayment plans. That number is much higher than what the US government originally expected.

Why the discrepancy? Part of it is that the number of borrowers enrolling in the plans has tripled in the last three years, forcing the government to spend more. It said almost 20% of direct-loan borrowers were “delinquent on their loan payments at the end of 2015, and more than a million borrowers defaulted on their loans over the 2015 fiscal year.”

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8 comments:

Zorro said...

Most of this debt comes from Salisbury University as result of sitting President Dudley Do Nothings>>food bill.

Anonymous said...

I wonder if they will forgive my mortgage, everyone else is getting handouts

World Grease said...

Is that $108 Billion in proof that the educated can't figure out how to pay their loans? I wonder how many BILLIONS will be forgiven in medical debt. Probably none, but I think that should be a priority over those educated crybabies.

Anonymous said...

6:49 - yes

Anonymous said...

BILLIONS for the college crybaby millinials but the WH complains about $750,000 yr in state aide to keep carrier open ,while i am at it how many BILLIONS in fed money does ny LIRR GET ?

Anonymous said...

Those of us that managed our finances to not have that debt and those that paid off their debt are paying through our taxes for these lowlifes that can't pick a useful degree or shouldn't have gone to college in the first place!

Anonymous said...

A degree being taught socialism by 60s draft dodging anti american so called professors IE BILL AYRES.

Anonymous said...

I think the Clinton foundation should help the poor college snowflakes pay their student loans, wouldn't that be the liberal thing to do?