The volume and number of federal student loans, which provide financing to make higher education more accessible, have grown over the past few decades. In 2017, the most recent year for which detailed information was available, $96 billion in new federal student loans was disbursed to 8.6 million students, compared with $36 billion (in 2017…

In February 2020, the Congressional Budget Office released a report on the budgetary effects of student loans repaid through income-driven plans. This paper provides additional information on the analysis the agency conducted on the characteristics of borrowers in those plans and the methods the agency used to project borrowers' earnings,…

Between 1965 and 2010, most federal student loans were issued by private lending institutions and guaranteed by the government, and most student loan borrowers made fixed monthly payments over a set period--typically 10 years. Since 2010, however, all federal student loans have been issued directly by the federal government, and borrowers have…

The federal government pays for a wide range of goods and services that are expected to contribute to the economy for some years in the future. Those purchases, called investment, fall into three categories: physical capital, research and development (R&D), and education and training. There are several economic rationales for federal…

Beginning August 1, 2009, the Post-9/11 GI Bill extended educational benefits to service members who were on active duty in the military on or after September 11, 2001. This GI Bill (officially the Post-9/11 Veterans Educational Assistance Act of 2008), the latest version of a law that helps veterans pay for higher education, provides more…

The Post-9/11 GI Bill provides educational benefits to service members and veterans who served on active duty on or after September 11, 2001. This GI Bill (officially the Post-9/11 Veterans Educational Assistance Act of 2008), which covers tuition, fees, housing, and related educational expenses, is managed by the Veterans Benefits Administration…

Higher education provides many benefits to students, including higher earnings, and to society, including increased tax receipts and reduced dependence on government assistance. But, in the Congressional Budget Office's (CBO's) view, there is no consensus on whether the current suite of federal programs and tax credits, or the amount of money…

In 2016, the federal government provided students pursuing higher education with about $91 billion in direct financial support through a wide variety of spending programs and income and payroll tax preferences, the Congressional Budget Office estimates. The largest programs and preferences give financial assistance to students to offset the cost…

In fiscal year 2011, the federal government provided $607 billion in grants to state and local governments. Those funds accounted for 17 percent of federal outlays, 4 percent of gross domestic product (GDP), and a quarter of spending by state and local governments that year. Over the past 30 years, those "intergovernmental" grants--financial…

The Federal Direct Student Loan Program offers loans to students and their parents to help pay for postsecondary education. Under current law, about $1.4 trillion in new direct loans will be made to students between 2013 and 2023, the Congressional Budget Office (CBO) projects. Analysts and policymakers have raised concerns about various features…

The Federal Pell Grant Program was created to improve the access of low-income students to postsecondary education. Grant recipients enroll at a variety of educational institutions, including four-year colleges and universities, for-profit schools, two-year community colleges, and institutions that specialize in occupational training. Grants are…

The federal government devotes roughly one-sixth of its spending to 10 major means-tested programs and tax credits, which provide cash payments or assistance in obtaining health care, food, housing, or education to people with relatively low income or few assets. Those programs and credits consist of the following: (1) Medicaid; (2) the low-income…

The federal government pays for a wide range of goods and services that are expected to be useful some years in the future. Those purchases, called investment, fall into three categories: physical capital, research and development (R&D), and education and training. There are several economic rationales for federal investment. It can provide…