The gift of Obamacare just keeps giving…
As part of Obamacare, Congress passed the Student Aid and Fiscal Responsibility Act or SAFRA, a revenue positive pay-for that made Obamacare’s budget impact less costly. The Journal called it a “takeover of the student-loan market.”
Fast forward six years to a report recently issued by Bureau of the Fiscal Service, a division of the Department of the Treasury:
the Department of Education’s (Education’s) Federal Direct Student Loan Program accounted for $880.6 billion (72.4 percent) of total net loans receivable. Education’s direct student loan program receivables balances have more than doubled since FY 2011 largely due to increased direct loan disbursements, attributable to the continued effect of 2010 legislation requiring a transition for new loans from guaranteed student loans to full direct lending by Education.
To summarize, out of the government’s $3.2 trillion in assets, 37 percent of that ($1.2 trillion) are payments from loans, and 73 percent of those loans are student loans. Which means that 27 percent of the federal government’s assets are the face value of outstanding federal student loans.
Information via The Weekly Standard