Cost Estimates
Congressional Budget Office Analysis of H.R. 609
H.R. 609 would make numerous changes to Federal higher education programs, including the student and parent loan programs. The Congressional Budget Office (CBO) projects that, under the current-law baseline, the loan programs would guarantee or disburse loans totaling about $360 billion over the 2006_2010 period — costing about $37 billion in total spending (mostly measured as subsidy costs). CBO estimates that enacting H.R. 609 would reduce these costs by $6.3 billion in 2006, $8.7 billion over the 2006_2010 period, and $4.5 billion over the 2006_2015 period. Provisions of H.R. 609 with significant budget effects include: Change the formulas used to…
