WASHINGTON — A bipartisan Senate accord supported by the White House to overhaul the federal student loan program is forecast to boost government profit and increase borrowing costs in the coming years, leading student groups and some Democrats to denounce the deal.
The compromise, reached by eight senators and blessed by the White House on Thursday, would result in an immediate reduction in borrowing costs under the federal student loan program — temporary savings that would be paid by graduate students and parents beginning in 2015, according to estimates derived from the White House’s most recent budget update.
Some undergraduate students will immediately pay more relative to borrowing costs that prevailed during the most recent school year, while the vast majority are forecast to pay more in the next five years, perhaps as early as 2016.
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