Talk:Student Aid and Fiscal Responsibility Act

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re: "potentially cutting the federal deficit by $87 billion over 10 years"

According to the Office of Management and Budget (OMB), under budget proposals that include the switch to 100-percent Direct Lending, the debt held in the Government’s various Direct Loan accounts is expected to rise from $632 billion in FY 2009 to $1.58 Trillion in FY 2019, an increase of more than $900 billion. Therefore, nationalizing the direct loan program will add substantially to the national debt over the next decade.

This means that those who benefit from the loans will actually pay twice, once when paying off the original loan and a second time when he or she pays the taxes necessary to eliminate the ever increasing national debt.

Of course some insist that the basis of the proposal is to deal with the larger budget issues, that any savings created by program changes will be used to plug budget gaps instead of providing additional funds for higher education.

Google Link Broken

No source given for budget