The Federal Student Loan Program is often criticized as a source of revenue for the federal government. But a new report from the Government Accountability Office (GAO) shows that the present situation can't be further from the truth.
When the Federal Direct Student Loan Program began in 1994, the Department of Education estimated that it would generate $114 billion in revenue for the federal government. Almost 30 years later, the program is estimated to cost the government $197 billion, a staggering difference of over $300 billion. The Federal Student Loan Program has failed, and the cost of its failures will be shouldered by the American public.
