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1 Phillip L. Swagel, CBO's Estimates of Student Loan Costs since 2010 1 (September 15, 2022)

handle is hein.congrec/bosesost0001 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE Phillip L. Swagel, Director U.S. Congress Washington, DC 20515 September 15, 2022 Honorable Warren Davidson U.S. House of Representatives Washington, DC 20515 Re: CBO's Estimates of Student Loan Costs Since 2010 Dear Congressman: This letter responds to a request by you and your colleagues for information about the Congressional Budget Office's estimates of the cost of student loan programs and how they have changed since 2010. CBO is currently analyzing the effects of President Biden's announcement on August 24, 2022, about executive actions affecting student loans. Estimates of the effects of those actions will be published as soon as they are completed. CBO recognizes that Members of Congress are interested in that information and is working hard to examine the issues. This letter does not address the new actions; it focuses on the questions you asked about student loans covering the period 12 years before the announcement. How Have CBO's Estimates of the Cost of Student Loan Programs Changed Since 2010? Overall, the estimated cost of the federal student loan program has increased since 2010. In CBO's assessment, the increases (estimated before August 24, 2022) primarily stem from the use of income-driven repayment (IDR) plans and not from the elimination of the guaranteed student loan program and its replacement with direct loans. CBO has not attempted a full retrospective analysis of the cost of changes to IDR provisions and the switch to direct loans specified in the Health Care and Education Reconciliation Act of 2010 (HCERA), Public Law 111-152.1 The agency has updated its estimates of the cost of student loan 1 For the 2010 analysis, see Congressional Budget Office, cost estimate for H.R. 4872, the Reconciliation Act of 2010 (March 20, 2010), w. g/21351. www.cbo.gov