Federal regulations are costly. To prove this point, look no further than what President Obama and the Department of Educationimplemented in October 2o15 for student loan debt:
The U.S. Department of Education on Tuesday finalized the regulations carrying out President Obama’s expansion of the government’s most generous income-based repayment program to more federal student loan borrowers.
Starting this December, all federal direct loan borrowers will be able to cap their monthly payments at 10 percent of their discretionary income and have any remaining undergraduate debt forgiven after 20 years of making payments. Borrowers with loans from graduate school would have to make payments for 25 years.
Now just over a little over a year later, the program has been found to be a major financial burden for taxpayers.
We just wrote about another Government Accountability Office report that blasted the Education Department’s understanding of basic mathematics and accounting concepts after finding the department drastically underestimated the costs of Obama’s student loan forgiveness programs. The 100-page report entitled “Federal Student Loans: Education Needs to Improve Its Income Driven Repayment Plan Budget Estimates” found that taxpayers could be on the hook for $137BN of student loans to be forgiven over the coming years as a result of Obama’s executive actions on IDR plans.
Forgiveness by a person is grace. Forgiveness via the federal government financially impacts us all.