GAO: Obama's IDR Program Will Cost Twice as Much as Initially Thought

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GAO: Obama's IDR Program Will Cost Twice as Much as Initially Thought

Dec, 6th 2016

Under changes made by the Obama administration, more borrowers were allowed to lower their monthly student loan payments based on their income. The relief was welcomed by recent grads who hadn't yet landed a high-paying job, as well as others who were struggling financially after the Great Recession and feared defaulting on their loans.

But the expanded income-driven repayment plans come at a cost to the federal government, which lends about $100 billion in student loans each year.

The program loses money because some participants, over the life of their loans, will pay less than they would under a standard repayment plan.

It's difficult to predict how much the program will...

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