The following article by Antionette Flores and Michela Zonta was posted on the Center for American Progress website July 31, 2017:
The budget proposed by the U.S. House of Representatives last week would put fundamental aspects of the American dream—attending college and buying a home—further out of reach for many families. By using a budgeting gimmick called “fair-value accounting,” instead of the accounting methods prescribed by the Federal Credit Reform Act of 1990 (FCRA), House Republicans are intentionally making the costs of federal lending appear more expensive. The latest House budget plan, for example, would add $326 billion in fictional costs to the federal deficit due to fair-value accounting.
This column explains what fair-value accounting is, why it’s an inaccurate way to estimate costs, and what it could mean for Americans with student loans and home mortgages. Instead of undermining federal lending through budget trickery, Congress should focus its energy on solidifying the programs and lowering costs for working families. Continue reading “House Budget Would Raise Borrowing Costs for the Middle Class”