First of all, this is ridiculous. Secondly, I have an idea. I was thinking the government could take that $51 bill in profit and use to pay off student loan debt starting with people closest to paying off their loans, and then moving backwards from there. What do you guys think? Alternative ideas are welcome and invited.
Government student loan program more profitable than Exxon Mobil
Why? Shouldn't people be required to fulfill the obligations that they agreed to? And should we (the tax payer) benefit in the form of lower taxes from any profitable agency that the guberment has? Maybe we should just run the student loan program as if it were a non-profit, and lower interest rates, as to make it easier for student borrowers to repay their loans.
And if the guberment is making money from the student loan program, and if virtually everyone eventually pays their student loans, is there really any "crises" or issue with the program?
I've read lots of stories about new college grads being $100k in debt, but not in actual government student loan debt. Usually that total debt includes a new car, a bunch of credit cards, and other debt obligations that the student took on - possibly a loan from a private lender, such as a relative, which the student took the money and then pissed it away on something stupid. The $100,000 in guberment issued or guaranteed student loan for a BA degree is a myth. It's actually impossible to borrow that type of money for a bachelors degree as we have caps on the amount that a student can borrow through a guberment program. A bank loan which is spent on an expensive car, is not in any way a student loan, even if the borrower happened to be a student at the time. And what type of moron bank makes loans like that to someone who has little if any income? Heck, I've held the same job for 25 years, lived in the same place for well over 25 years, have a 6 figure income, and I can't get an unsecured loan for $100k.
My college student son will likely owe about $88,000 total in student loans if he completes the educational track that he currently has planned (he will finish his bachelors this year, after just 3 years and $18,000 in student loan debt, and enroll in a MBA/JD combined program starting next August, adding another $70k in student loan debt. Now granted that is getting mighty close to that $100k mark, but thats for a bachelors, a masters, and a doctorate all combined. His total student loan debt will be more or less equivilent to his first two years of entry level after tax pay. Thats not really that bad of a deal.