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Politico: Senate Bill Would Require Would Require Changes in Calculating Student Loan Costs

By Allie Grasgreen

“A new Senate bill would require federal student loan programs to use so-called fair-value accounting — which would show a much larger cost to the government of the program. In introducing her Budget and Accounting Transparency Act today, Sen. Deb Fischer (R-Neb.) cited a POLITICO report of a $21.8 billion shortfall in the student loan program. She said her bill would protect taxpayers and ‘prevent wasteful mistakes like these from happening.’ Critics believe the current government accounting system for credit programs dramatically understates costs because the budgets don’t account for certain risks private lenders have to take into account.” Read more here.