GAO: Borrower Interest Rates Cannot Be Set in Advance to Precisely and Consistently Balance Federal Revenues and Costs

The Department of Education reported that full administrative costs (i.e. costs incorporating both direct and indirect administrative costs) for the Direct Loan program increased by $550 million from fiscal year 2007 to fiscal year 2012, to total $864 million in fiscal year 2012. These Direct Loan administrative costs represent 65 percent of the $1.3 billion in new budget authority made available to the Student Aid Administration account in fiscal year 2012.