Today, Republican Leaders of the Education and Labor Committee Virginia Foxx (R-NC) and Subcommittee on Higher Education and Workforce Investment Greg Murphy (R-NC) sent a letter to the Government Accountability Office (GAO) requesting insight into the federal government’s negligent miscalculation of student loan projections. Taxpayers could be on the hook for hundreds of billions of dollars more than previously expected.
In the letter, the Members write: “We understand the Department of Education is hiding information from the public that…reportedly details a gap of hundreds of billions of dollars between what the government estimates the taxpayer impact of the federal loan program is and the actual cost.” The Members continue: “With the official national 3-year cohort default rate at nearly 10 percent, the Secretary of Education contemplating additional repayment pauses, and some policymakers contemplating significant forgiveness proposals, taxpayers and borrowers deserve better. The stakes are simply too great for Congress to look the other way and allow these accounting games to continue.”
Read the full letter to Comptroller General Dodaro here.