Taxpayer Groups Call for ‘Rigorous’ Analysis of Obama’s $43 Billion Student Loan Rule

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Free Beacon:

Several taxpayer groups will meet with Obama administration budget officials on Friday to voice concerns about the cost of a proposed student loan regulation that the Department of Education estimates would cost up to $43 billion.

 

The regulation, which would allow student borrowers to sue for debt relief if they claim they were victim to a “substantial misrepresentation” by their school, has been submitted to the Office of Management and Budget for review.

 

The taxpayer advocate groups requested the meeting with OMB in a letter last week. They said the rule had not undergone sufficient analysis and that Congress should be consulted on a change that carries a possible price tag of $43 billion.

 

“Such an enormous commitment of federal taxpayer dollars should not be made through agency rulemaking without an express directive from Congress, and it certainly should not be made without a far more rigorous analysis and estimate of what the costs to taxpayers will end up being that the Department of Education has conducted to date,” the groups wrote in a letter to OMB official Howard Shelanski.