It’s not hard to realise why the 43 million Us citizens with pupil debt get riled up if they hear the us government is earning profits off their loans.
The loan that is federal had been, all things considered, designed to make university affordable for more Americans.
“That’s probably one of several only things the us government should not make money down — I think it really is terrible this one for the only revenue facilities we’ve is student education loans, ” Donald Trump told The Hill in July.
Hillary Clinton’s campaign internet site states she’s going to “considerably cut interest levels so that the government never profits from university student loans. “
It is the federal government money that is really making of student education loans?
Loss or profit?
The federal student loan program could turn a profit of $1.6 billion in 2016, according to the Congressional Budget Office by one estimate.
That isn’t a profit that is huge you think about that this system lends out about $100 billion per year. However the CBO also projects so it would keep earning money every year within the next ten years.
This is the official calculation that federal federal government spending plan analysts are expected — for legal reasons — to make use of whenever calculating the cost of the federal loan program. Continue reading