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Student loan debt is now one of the Obama Administration's biggest cash cows.
The government is poised to pocket a record $51 billion profit from federal student loan borrowers this year, according to a report by the Congressional Budget Office.
That's roughly 40% higher than the CBO's original forecast in February, $35.5 billion.
The Huffington Post's Shahien Nasiripour helps put the new estimate in perspective:
"Exxon Mobil Corp., the nation's most profitable company, reported $44.9 billion in net income last year. Apple Inc. recorded a $41.7 billion profit in its 2012 fiscal year, which ended in September, while Chevron Corp. reported $26.2 billion in earnings last year. JPMorgan Chase, Bank of America, Citigroup and Wells Fargo reported a combined $51.9 billion in profit last year."
Student debt is second only to mortgage debt in American households, and it's the only kind of debt that's steadily increased even throughout the recession. We're long past the $1 trillion-mark for federal and private student loans combined, but federal loans may break $1 trillion on their own soon enough.
Still, none of these moves would really help today's student borrowers. Student loans are practically impossible to discharge in bankruptcy, and for those unlucky enough to have borrowed from private lenders, variable interest rates can be crushing over time.
originally posted by: infolurker
As the cost of "so called" higher Education increases exponentially over the years, so does the profit for the Department Of Education. Consider this a "stealth tax" on students who either didn't have the necessary information to make an informed decision on the "pay vs. the cost" of student loans for their particular field or of course those just plain dumb enough to go $50,000 in debt they can never write off to get a $10 an hour job.
Advice for those going to college.... If you are going to take out massive amounts of debt, make damn sure the job you are training for pays enough to pay back that debt!
Doctor, Pharmacist, Dentist, etc.
Do your research or you will either be in debt for the rest of your life or live below the poverty line so you can defer the debt payments (one of my wife's acquaintances has to intentionally live below the poverty line or pay back $90,000 in debt for a Graphic Design Degree which did not translate to a job!)
Student loan debt is now one of the Obama Administration's biggest cash cows.
The government is poised to pocket a record $51 billion profit from federal student loan borrowers this year, according to a report by the Congressional Budget Office.
That's roughly 40% higher than the CBO's original forecast in February, $35.5 billion.
The Huffington Post's Shahien Nasiripour helps put the new estimate in perspective:
"Exxon Mobil Corp., the nation's most profitable company, reported $44.9 billion in net income last year. Apple Inc. recorded a $41.7 billion profit in its 2012 fiscal year, which ended in September, while Chevron Corp. reported $26.2 billion in earnings last year. JPMorgan Chase, Bank of America, Citigroup and Wells Fargo reported a combined $51.9 billion in profit last year."
Student debt is second only to mortgage debt in American households, and it's the only kind of debt that's steadily increased even throughout the recession. We're long past the $1 trillion-mark for federal and private student loans combined, but federal loans may break $1 trillion on their own soon enough.
Still, none of these moves would really help today's student borrowers. Student loans are practically impossible to discharge in bankruptcy, and for those unlucky enough to have borrowed from private lenders, variable interest rates can be crushing over time.
originally posted by: WeRpeons
a reply to: infolurker
They better enjoy it while it lasts, because student loan defaults are at their highest. Student loan debt will be one of the main factors that will cause an economic collapse in this country. Something better be done to help these college graduates get off their feet so they can contribute to the economy and have some spending money to invest and buy consumer goods. These students are strapped with loans that are equivalent to mortgage payments!
a reply to: ketsuko
Yep, we pay two mortgages each month - one to the mortgage agency and one to the student loan folks.
originally posted by: infolurker
Advice for those going to college.... If you are going to take out massive amounts of debt, make damn sure the job you are training for pays enough to pay back that debt!
Doctor, Pharmacist, Dentist, etc.