On Wednesday, Senate Democrats introduced a bill (S. 2343) to extend the current interest rate on subsidized student loans for one year beyond the July 1 expiration date. The Congressional Budget Office (CBO) estimated the cost of a one-year extension to be $6 billion, which the bill would pay for by ending a tax benefit for S corporations. Under the bill, shareholders of these corporations w...
As part of the Campaign to Cut Waste, the Obama administration cut erroneous Pell Grant payments to 2.7% in 2011, the lowest it has been since 2005. White House officials estimate that reform measures saved $300 million in overpayment through the Pell Grant student aid program. The 2011 payment errors totaled $1 billion, approximately the same as the payment errors for 2010, but an increase in the...
