The US' Government Accountability Office (GAO) suggests the $1.3tn US student loan debt situation will get worse because the Department of Education significantly underestimated the cost of the government's income-driven repayment programme. Income-based repayment preceded the current administration, but it was expanded under President Obama as student debt loads continued to mushroom, putting a strain on the ability of some Americans to buy homes and manage their budgets. As a result, the federal government may be forced to forgive up to $108bn in student loans over the next few years, with a further $29bn expected to be discharged. In its latest report on the student-loan program, released today, the GAO said that it was "unable to determine whether borrowers are eligible for repayment".
The US' Government Accountability Office (GAO) suggests the $1.3tn US student loan debt situation will get worse because the Department of Education significantly underestimated the cost of the government's income-driven repayment programme. As a result, the federal government may be forced to forgive up to $108bn in student loans over the next few years, with a further $29bn expected to be discharged. In its latest report on the student-loan program, released today, the GAO said that it was "unable to determine whether borrowers are eligible for repayment".