It’s not hard to realise why the 43 million Us citizens with pupil financial obligation get riled up if they hear the us government is earning money off their loans.
The federal loan system ended up being, all things considered, designed to make university affordable for more Americans.
“that is probably one of several only things the us government should never make money down — I think it is terrible this 1 associated with the profit that is only we’ve is student education loans, ” Donald Trump told The Hill in July.
Hillary Clinton’s campaign web site states she’s going to “considerably cut rates of interest and so the federal federal federal government never profits from university student loans. “
It is the federal government really earning money off of student 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 is not a profit that is huge you think about that this system lends out about $100 billion a year. However the CBO additionally projects it would keep earning money every year within the decade that is next.
This is the formal calculation that federal government spending plan analysts are expected — for legal reasons — to utilize whenever calculating the price of the loan program that is federal. (more…)