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cost estimate
April 10, 2012
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Education
Education in the United States is primarily the responsibility of states and localities. However, the federal government annually provides about 10 percent of the funding for K–12 schooling and helps students finance higher education through two major programs—one that makes loans to borrowers and one that provides grants to low-income students. Between 2000 and 2009, the volume of outstanding federal student loans more than quadrupled to reach $630 billion and annual spending for grants more than tripled to stand at $27 billion. The federal tax code also offers favorable taxation treatment to educational institutions. CBO has analyzed the costs and economic impact of these and other policies that affect education.
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