Blog

Welcome to our blog – The Bottom Line, where you’ll find up-to-date commentary and analysis on the most important news in the fiscal world. Below is a list of our blog posts.

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Deloitte: "Red Ink Rising"

Looks like even after 8 months, our Red Ink Rising report is still inspiring a significant amount of discussion. Take for example another fine work...

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FOMC to the QE?

With heated public debate and growing uncertainty about the momentum of the economic recovery, all eyes turned to the scheduled meeting of the Federal...

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Options for Reform

We've talked a lot about the long-term outlook for Social Security (it is insolvent), its impact on the federal budget (it will increase debt held by...

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Recent Student Loan Actions Forgo $5 Billion in Repayments

The Department of Education announced last week a six-month extension of automatic forbearance to all borrowers enrolled in the SAVE income-driven repayment plan while it is being challenged in courts, adding that they will forgive any unpaid accrued interest during that time. We estimate that the Department of Education is forgoing roughly $500 million of repayments per month, meaning that this extension would result in $3 billion in forgone payments, bringing the total amount up to $5 billion. Importantly, much of those payments will instead be paid later, and so the net cost would be some fraction of that $5 billion.

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