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Gov’t Will Make More $50B From Student Loans

From the Detroit Free Press:

Government projects to make $50B in student loan profit

U.S. government projects to make record-high profits on student loans.

David Jesse | June 16, 2013

DETROIT — The U.S. government projects to make more money off student loans this fiscal year than ExxonMobil, Apple, J.P. Morgan Chase or Fannie Mae made on their respective businesses last year, a new analysis shows.

According to the Congressional Budget Office’s latest projections, the federal government projects a record $50-billion profit on student loans this year. ExxonMobil made $44.9 billion in 2012, according to published reports, making it the most profitable company in the country. And if Congress doesn’t stop rates on some loans from doubling on July 1, that profit will rise more, up to an additional $21 billion, a recent report found…

"I can understand private companies making profits off student loans — part of mine are private — but it doesn’t make sense for the government to be making huge profits off the backs of young students just trying to make themselves employable in a terrible economy," said Kristy Currier, 26, of Detroit.

We wonder if Ms. Currier remembers that Obama is running the student loan program now? We suspect not.

In any case, most of these students will never figure out Obama’s involvement. Even if they hear about it, they will never believe it. Obama couldn’t possibly be making money off of their college loans.

Currier said she pays between 3.9% and 10% interest on her various student loans, which total about $75,000…

Jonathon Whaley’s loan payments suck out about $750 a month from his bank account. The 25-year-old Grand Rapids resident is paying off both federal and private loans. His private loans charge him 4% interest. His federal loans charge him 7%.

"Because the government has almost ensured anyone who applies will get the loan they need, schools have been able to drive prices up with no concern as to where funding will come from," Whaley said. "With prices skyrocketing, students are taking on way more debt than they can handle but have no other option to compete in the modern economy."

Whaley, a compliance manager/attorney at an investment firm in Grand Rapids, took out about $250,000 in loans to finance his education at the University of Dayton and Ave Maria School of Law.

"I was lucky to fight through a terrible job market and scrape by enough money to make my loans a burden and not a killer. However, I have dozens of friends who are not so lucky.

"The government needs to remove itself from the student loan industries or else it will continue to destroy my generation." …

Well, one person has figured it out.

This article was posted by Steve Gilbert on Monday, June 17th, 2013. Comments are currently closed.

11 Responses to “Gov’t Will Make More $50B From Student Loans”

  1. BannedbytheTaliban

    Now if you vote to stop the Democrats from expanding the dependent class you are denying young people the opportunity to succeeded, denying poor people access to medicine, denying old people social security, denying minorities equal employment, and also, dirty air, dirty water, and uninspected meat like back in the Upton Sinclair days. Gosh those Republicans sure are mean, and profiteering.

  2. From the box office release The International (five star recommendation)

    Umberto Calvini: [In explaining the "true" nature of banks funding wars and trouble spots]

    “The IBBC is a bank. Their objective isn’t to control the conflict, it’s to control the debt that the conflict produces. You see, the real value of a conflict, the true value, is in the debt that it creates. You control the debt, you control everything. You find this upsetting, yes? But this is the very essence of the banking industry, to make us all, whether we be nations or individuals, slaves to debt.”

  3. Petronius

    “His private loans charge him 4% interest. His federal loans charge him 7%.”

    At 7% you’re toast. You’re talking debt bondage, indentured servitude, and chattel slavery. Especially if you’re a white student standing forever at the back of the hiring line … for everybody else, affirmative action gives you a boost, affords you at least a chance of escape before you’re sucked down by the vortex of compounding interest.

    But what a sweet deal for the government elites –– you gouge the older half of the population for taxes and the younger half for interest.

    Guess that’s why Friedrich Hayek called it “The Road to Serfdom.”

    • White student / Black student

      White:
      Get loans
      Work two jobs
      Study hard if you don’t understand
      Long hours at the library
      Get “F”, retake the class
      Drop out or don’t graduate, no one cares
      Fight and compete in dog-eat-dog world
      Take 15-20 years to pay back loan, live in your van in the meantime
      Be discriminated in hiring process
      Try to start your own business with red-tape and pro-minority loans, funding
      Can’t sue because you can’t prove anything

      Black:
      Get minority assistance loans, or tuition forgiveness
      Don’t work even 1 job
      Join Black Student Union where forced student dues fund your protest marches
      Go to the minority office to get special tutors
      Don’t study very hard, professor has been informed of your existence in class through minority liaison.
      Don’t get an “F” because there is a forced graduation rate at your campus
      University is punished for high minority drop-out rate
      Don’t compete for jobs because Affirmative Action gets your resume at the top of the pile
      If you are not hired, sue. If you are hired then fired, sue. If you are hired but not promoted in your made-up timeline, sue.
      Don’t pay back loan, Uncle Sam covers it

      *I saw on, I believe it was a cable network, perhaps the Documentary Channel, where in (fuzzy memory) Brazil or some Latino country decided to give African-Brazilians Affirmative Action because of cultural discrimination, and guess what? The native-Brazilians were plenty angry at this government forced discrimination! I wish I could find out where I saw that. It was Mexico, or some South American country, but boy, every American should see that one. Did any of you see that? Ring a bell?

  4. canary

    Currier is out of touch. The federal student loans just went up to the same as high interest credit cards and in some cases if you don’t pay in time a student can end up paying double the loan.
    In the last 4 years college tuition has gone up 4 times.

    People will be like the Obama’s getting all those grants and scholarships and still be paying until they run for president and have to pay them off.

  5. canary

    The federal govt will “sue you” if you are delinquent on student loan payment; demand entire payment of entire loan, and other misc fees.

    From their site.

    Your loan first becomes “delinquent” if your monthly payment is not received by the due date.

    If you are delinquent on your loan payments, contact your loan servicer[sic] immediately to find out how to bring your account current.

    Late fees may be added, and your delinquency will be reported to one or more national consumer reporting agencies (credit bureaus), but this is much better than remaining delinquent on your payments and going into default.

    Consequences of default

    If you default:

    We will require you to immediately repay the entire unpaid amount of your loan.

    We may sue you, take all or part of your federal and state tax refunds and other federal or state payments,

    and/or garnish your wages so that your employer is required to send us part of your salary to pay off your loan.

    We will require you to pay reasonable collection fees and costs, plus court costs and attorney fees.

    You may be denied a professional license.

    etc etc. Think I’ll show this to my son, so he understands not to even think of a student loan.

    Can you imagine when 40% of college students can’t get a job! It is at that point that they really starting heaping the higher interest rate. All wording is catchy.

    • Petronius

      “or garnish your wages so that your employer is required to send us part of your salary to pay off your loan.”

      Bingo.

      That’s the chattel slavery part I mentioned (above).

      The Federal government is the only power on earth that can garnish your wages without a court order.

      There is no escape.

      Nerobama has not only shredded the Constitution and the Bill of Rights –– he’s even shredded the 13th Amendment.

    • This is truth. Our government has set itself above the Law of the United States.

      BTW – note the parsed wording of the 13th Amendment –

      Section 1. Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.
      Section 2. Congress shall have power to enforce this article by appropriate legislation.

      involuntary servitude

      It says nothing about voluntary servitude.

  6. “……schools have been able to drive prices up with no concern as to where funding will come from>”

    NO KIDDING! It’s almost as if liberals are screwing over other liberals and not following their flowery idealistic view of the world that they preach to the students every day.

    1. It’s liberal’s fault for the high cost of education.
    2. Republican controlled states could put a stop to this, and stop funding them, until they reform their costs.
    3. SALARY CAP the liberals! Oh my! The rich should be taxed more, or “capped” with high taxes, and Obama says retirement accounts should be capped at 3 million, well why not cap the college professors?

    *Also. I have said this before, but it bares mentioning again. Liberals DON’T HEAR negative things about people they like. They have a careful ear to detect things George Bush says, or even invent “coded speech” which never existed, but when it comes to weird, crazy, incoherent, racist, contradictory things the Clintons or Obama says, I’m telling you, it’s not low information, it’s not paying attention, it’s not low comprehension skills, they literally did not hear the words they said. –It’s based on EMOTION and FEELINGS when Hillary Clinton talks, they actually don’t listen to the words she uses.

    It’s seems strange to the logical mind, but emotionally-driven people operate on a totally different dimension than others do. They don’t hear it.

  7. mr_bill

    The left has a wonderful little system here: students take out loans to pay for indoctrination. Those loans fund leftist professors, who in turn send their money back to the leftist politicians. A student graduates with a warped liberal mindset and a huge debt burden, which can be excused after 10 years of government work or reduced if the person happens to be a dependent of the state. The whole cycle breeds failure and government dependency.




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