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-- another big story today student loan rates set to double after congress failed to reach a deal today's -- -- for that.
As a new report predicts student loans could cost taxpayers upwards of a hundred.
Billion dollars over the course of the next seven years Peter -- on the story -- DC joins us now Peter.
-- -- this new estimate on potential taxpayer losses in the federal student loan program comes from Barclays Capital.
And it is drawing new attention to the government's unique.
Accounting method for student loans which shows the making a big profit for the taxpayers now in jail in the Congressional Budget Office estimated the long program.
Ordered a profit of -- 159 billion dollars for taxpayers by.
20/20 over seven years helping to cut the deficit now that forecast assumed that doubling of interest rates on some loans.
That occurred today.
But even the CBO acknowledges in its report that the official accounting method does not take into account.
Real world risks like higher student default rates during slow economic periods and recessions.
Including those CBO says that they tax the taxpayers could lose fifty billion dollars.
On government loans over seven years and analysts are also concerned.
About -- likely increase in the number of students who choose to make their monthly payments.
Based on a percentage of their income those programs forgive remaining debt after a certain number of years.
So Barclays comes along and clues that and says that it believes congress will approve proposals to -- student loan rates to market rates.
And all together that will likely raise costs to borrowers over time driving more of them into income based -- repayment programs.
More debt forgiveness and that will cost the taxpayers a hundred billion dollars.
Changes the debates about policy.
And subsidy and surplus -- such that people want to make claims about how much money were quote unquote making on student loans.
When a reality those profits are sort of illusory if if anything.
And this debate is being played out back home during the congressional -- -- recess between Democrats and Republicans.
Fighting over how to move forward on this program may be to make this increases doubling of some.
Other rates on some loans retroactive to today when they get back.
Next week -- back a case -- out of his under the watch for the come -- -- retroactive to fix is possible Peter thanks Peter -- in DC let's get back now to them.
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