CBO Scores Alternative Loan Plan as Saving $75 Billion

December 3, 2009

The Congressional Budget Office has estimated that a legislative alternative to President Obama's plan to end student lending through the Federal Family Education Loan Program would save about $75 billion, several billion less than the administration's plan, Congress Daily reported. The alternative is similar to one put forward last summer by lender groups, which would allow banks and other lenders to continue to make loans and sell them to the government. A spokesman for Sen. Robert Casey (D-Pa.), who asked the budget office to "score" the proposed legislative language, said the senator has not necessarily decided to introduce the measure as an alternative to the bill that Senate Democrats are expected to unveil in the weeks to come. "We requested a preliminary score from CBO of possible legislative language," the spokesman said. "We sought the score to obtain as much information as possible as we make determinations on how to proceed."

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