How CBO Analyzes the Sources of Lenders’ Interest Income ...
Congressional Budget Office
Background Paper
How CBO Analyzes the Sources
of Lenders¡¯ Interest Income on
Guaranteed Student Loans
June 2004
THE CONGRESS OF THE UNITED STATES
A
CBO
R E P O R T
How CBO Analyzes the Sources of
Lenders¡¯ Interest Income on
Guaranteed Student Loans
June 2004
The Congress of the United States O Congressional Budget Office
Preface
This report describes the method the Congressional Budget Office (CBO) uses to estimate the
sources of lenders¡¯ interest income on student and parent loans in the Federal Family Education
Loan program. That method accounts for the likely values of future interest rates and specific
program rules, including those for setting borrowers¡¯ rates and for calculating the government¡¯s
supplemental payments.
Nabeel Alsalam (202-225-2639) of CBO¡¯s Health and Human Resources Division prepared this
report. It benefited from comments provided by Robert Arnold, Paul Cullinan, Robert Dennis,
Deborah Kalcevic, Samuel Kina, Steve Lieberman, Ralph Smith, Bruce Vavrichek, and Dennis
Zimmerman, all of CBO.
Christine Bogusz edited the report. Maureen Costantino prepared it for publication, and Annette
Kalicki produced the electronic versions for CBO¡¯s Web site.
Douglas Holtz-Eakin
Director
June 2004
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