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The federal student loan program will begin costing the federal government money within the next 10 years, according to the latest projections from the Congressional Budget Office.
The CBO estimated last week that the loan program will run a deficit of more than $31 billion over the next decade, thanks mostly to administrative costs. But the biggest difference from previous projections was much lower estimated revenue from federal direct loans.
As recently as last year, the agency projected that the federal student loan program would bring in revenues of $8.7 billion over 10 years.
Bloomberg Government first reported the new CBO estimates.
The Wall Street Journal previously reported that the Trump administration had retained the consulting firm McKinsey & Co. to evaluate potential losses from the $1.45 trillion student loan portfolio.
