Role of Government in College Education
The trends already discussed and the projected increase of student loan borrowers and aid applications will increase FSA’s responsibilities and workload; however, the workforce is not expected to increase at the same pace (As shown above). For example, by the end of 2012, the number of borrowers serviced by FSA is expected to increase 246 percent from the FY 2006 baseline. The number of aid applications is expected to grow by approximately 80 percent. During FY 2012, FSA’s budget and on-board staff are projected to increase by approximately 53 percent and 23 percent respectively. The increase in FSA’s budget is the result of transitions to 100 percent Direct Loans. Even through there are increased costs for this program each year, the Congressional Budget Office estimated the shift to direct lending would save $67 billion over 10 years.