Reduce or Eliminate Subsidized Loans for Undergraduate Pupils

CBO sporadically issues a compendium of policy choices (called choices for Reducing the Deficit) addressing an easy array of dilemmas, also split reports such as alternatives for changing federal income tax and spending policies in specific areas. This choice seems in just one of those magazines. The choices derive from numerous sources and reflect a variety of opportunities. For every choice, CBO presents an estimate of their results from the spending plan but makes no suggestions. Addition or exclusion of every option that is particular maybe perhaps not indicate an recommendation or rejection by CBO.

Huge amounts of Dollars 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017-2021 2017-2026
believed Making use of the Method created in the Federal Credit Reform Act
improvement in Outlays
Restrict use of subsidized loans to pupils qualified to receive Pell funds -0.3 -0.7 -0.8 -0.8 -0.9 -0.9 -0.9 -1.0 -1.0 -1.0 -3.5 -8.3
Eliminate subsidized loans altogether -1.0 -2.2 -2.6 -2.7 -2.8 -2.9 -3.0 -3.1 -3.2 -3.3 -11.2 -26.8
believed utilizing the Fair-Value Method
improvement in Outlays
Restrict usage of loans that are subsidized students qualified to receive Pell funds -0.3 -0.6 -0.7 -0.7 -0.8 -0.8 -0.8 -0.8 -0.9 -0.9 -3.0 -7.2
Eliminate subsidized loans altogether -0.8 -1.8 -2.2 -2.3 -2.4 -2.5 -2.6 -2.7 -2.8 -2.9 -9.6 -23.1

This choice would just just just take impact in July 2017.

For legal reasons, the expenses of federal education loan programs are calculated when you look at the budget based on the technique created in the Federal Credit Reform Act. The fair-value technique is an alternate and it is one of them table for informational purposes.

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