Who’d-a Thunk?

According to President Barack Obama’s Department of Education, his student loan forgiveness program already is experiencing cost overruns to the tune of nearly $22 billion. Obama’s 2010 PAYE expansion at the time was projected to add $9 billion to the taxpayers’ bill for students not repaying their debt. As the DoE put it,

The 2015 amount includes a net upward reestimate of $21.8 billion, primarily related to revised interest rates and increased participation in income-driven repayment plans.

Or, in the words of James Schneider, who wrote the article at the second link,

[S]welling enrollment due to looser loan rules is driving up costs….

Or, Romina Boccia, of the Heritage Foundation:

They didn’t account for the market risk in making these loans[.]

Or, Steve Ellis, of Taxpayers for Common Sense:

…hard to see how this is going to come out as a net positive as the administration predicts[.]

Or, Lindsey Burke, also with the Heritage Foundation:

Somebody pays for that loan forgiveness. And that is the three-quarters of Americans who don’t have bachelor’s degrees themselves.

Now, how does that work, exactly? Who could have expected such an outcome? Apparently everyone in the Universe except Democrats.

One thought on “Who’d-a Thunk?

Leave a Reply

Your email address will not be published. Required fields are marked *