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No. Federal government accounts debt on accrual basis. The loans were recorded as 0. This action records an immediate deficit.

• lapcat 4y ago
  Eh, does the accounting really matter? It's not like the federal budget is anywhere near balanced anyway. What really matters is when and how much the federal government is paying out to schools, and when and how much the debtors are paying back to the federal government. The actual cash flow. This all seems pretty insane: on pages 9 and 10 of "An explanation of the budgetary changes under credit reform", it looks like one hand of the government, which is on budget, borrows from another hand hand of the government, which is off budget? ¯\_(ツ)_/¯ My mind is going, I can feel it. https://www.cbo.gov/sites/default/files/102nd-congress-1991-1992/reports/7916.pdf https://www.cbo.gov/sites/default/files/102nd-congress-1991-... Anyway, since Congress changed the accounting method from cash to accrual in 1990, they can just change it back if they happen to not like the current deficit numbers. ;-)
  • guywithahat 4y ago
    We're currently experiencing ~8% inflation; it very much does matter. Someone has to pay it, which means it'll happen either as a tax or inflation
    • lapcat 4y ago
      > Someone has to pay it It. What is "it"? Pay what, exactly?