Monday, December 28, 2015

Who's Profiting From $1.2 Trillion of Federal Student Loans? - Janet Lorin, Bloomberg

Congress created the loan program 50 years ago with the goal of encouraging students to attend college. Today, the Education Department is one of the largest financial institutions in the country. If it were a bank, it would rank fifth in the U.S. in assets. The government has disbursed about $100 billion in education loans annually since the 2009-2010 school year, according to data compiled by the College Board. Just six years before that, the amount was almost half. The total has doubled since 2007 and is expected to double again in the next decade, as students and their parents borrow for college and graduate school. The sum also is increasing because of accrued interest, including on older defaulted loans. http://www.bloomberg.com/news/articles/2015-12-11/a-144-000-student-default-shows-who-profits-at-taxpayer-expense

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