Student Loan Reform

Upon request, I've just spent 15 minutes trying to look into competing CBO scores for the Student Loan Reform that was passed in the HCR reconciliation package, following the assertion that after making the scoring process more "fair" the reform actually ended up costing us money.  It turns out, of course, that this once again provides an example of the right wing simply lying to their poor, trusting voters.

Of course, with all of these large bills, there has been an open and gradual revision process, generating CBO scores all along the way.  After all, now that a Democrat is in the White House everyone cares about CBO scores and actually, you know, paying for things.  Go figure.  In this case, the CBO originally scored the reform at saving $62 billion over 10 years.  After some revisions were made to make the score better conform with reality, the figure was revised to $40 billion in savings.  This is where the dishonesty starts.

I wont link to them, but here's the relevant part of the story my friend saw:
Moreover, the debate on savings has overshadowed the fact that the planned reforms still add to the deficit. As the CBO explains,

“Whereas on average over the 2010-2020 period a representative loan issues in the direct loan program has a negative subsidy rate of 9 percent under FCRA (meaning that it reduces the deficit), the same loan has a positive subsidy rate of 12 percent on a fair value basis.”

So while the reform may reduce the deficit compared to the current broken system of a private-public hybrid, that is not the same thing as saying it will actually end up in the black.
How stupid does this author think we are?  Of course the student loan program costs the government money! We're not trying to run a profit on educating our future generations!  The government is not a business!  The question is not whether the entire program will be in the black, the question is whether the reform that just passed made things better or worse.  The answer?  On every front, it made things better - more loans will be given, more Americans will be educated, and the whole thing will end up saving us tens of billions of dollars over the status quo ante.  "The reforms still add to the deficit."  No they don't, you twit.  The Program adds to the deficit.  The Reforms reduce the deficit.

I guess this author might not have been intentionally dishonest.  The "Are they Stupid or Dishonest" question is an evergreen topic.

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