Republicans in the Senate rejected their own student loan deal today after the Congressional Budget Office released its potential cost.
The CBO announced today that the bipartisan student loan deal created and pushed for by Sens. Joe Manchin (D-W. Va.), Lamar Alexander (R-Tenn.), Richard Burr (R-N.C.) and Tom Carper (D-W.Va.) would cost $22 billion over 10 years. Don’t forget, the federal government will generate $184 billion in profit on student loans from this fiscal year to 2023. So if this new bipartisan plan is implemented, the federal government will make just $162 billion off of the backs of our students. And that just won’t fly with Republicans.
Republicans will only accept a student loan deal that is deficit-neutral, and so they have thrown out yet another proposal – one they helped create – because it will mean $22 billion less for the federal government.
So it’s back to the drawing board on student loans, as the start of school looms closer. We can only hope Congress comes to a deal that won’t pin higher costs on already struggling students.