You can realise why the 43 million People in the us with pupil financial obligation get riled up once they hear the us government is earning profits off their loans.
The federal loan system ended up being, most likely, designed to make university affordable for more Americans.
“that is probably one of several only things the us government should never make money off — I think it is terrible this one associated with the only profit facilities we’ve is student education loans, ” Donald Trump told The Hill in July.
Hillary Clinton’s campaign web site claims she’ll “considerably cut rates of interest so that the federal federal federal government never profits from university student loans. “
It is the federal government money that is really making of figuratively speaking?
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 is not a profit that is huge you think about that this system lends out about $100 billion per year.