The Education Department, led by Arne Duncan, was expected to earn $33.5 billion off of student loans made during the 2013 fiscal year, according to budget documents.
The agency’s Direct Loan program delivered a $24 billion profit on loans made in 2012, and nearly $227.5 billion on 2011 loans.
In fact, over the last five fiscal years, the Education Department has generated $101.8 billion in profit from student borrowers, thanks to low borrowing costs for the government and fixed interest rates for students, budget documents show.
Some student advocates have charged that the department is profiting off the backs of students.
After a requests from Huffington Post, Education Department spokesmen did not respond to requests for comment.
The White House is expected to propose on Wednesday that some student loans move from a fixed rate of interest, presently determined by Congress, to a variable rate that moves with borrowing costs determined by the market, people familiar with the matter said.
Where do we go from here?
Will the fractured system of student loans be fixed to a reasonable plan for all college students?
It’s hard to say what that looks like, however, it is clear that the monies accumulating from student loans is absurdly high. Therefore, if loan rates dropped it would be better for innocent college students.
Nevertheless,producing a balanced budget is never the easiest thing to do. However, we must work toward better solutions to saving the flawed educational system at-large.
Where do we go from here?
We must realize that what is present is not always what is best. The current will forever need change to make it better. When the nation realizes this the nation will be in a better state educationally.
Where do we go from here?
Lower loan rates, lower tuition, more grants and scholarships; which will lead to more college graduates. Which may lead toward less violence and less poverty. We must always look for ways to include the marginalized because the plague of being left-out needs to be left-out.
