You can understand why the 43 million People in the us with student financial obligation get riled up if they hear the us government is earning profits 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 many only things the federal government should never make money down — I think it is terrible any particular one regarding the only revenue facilities 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 therefore the national federal federal government never profits from university student loans. “
It is the us government really earning money off of figuratively speaking?
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 take into account that this program lends out about $100 billion per year.