Residual income is the amount of money available to
the borrower after all deductions, withholdings, housing and installment debt are subtracted from the gross monthly income.
Further, the Treasury Department projects that between 2018 and 2026, the cumulative cost of the
deduction will be slightly less than $ 20 billion, roughly comparable to that of the Public Service Loan Forgiveness Program, which provides loan forgiveness
after 10 years for
borrowers working in public service and was targeted for elimination in President Donald Trump's proposed budget.