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May 16, 2013

U.S. Earns $50.6 Billion Profit on Student Interest 
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New figures show the U.S. government is reaping a huge windfall off of
the interest on student loans. The Congressional Budget Office is
forecasting a profit of $50.6 billion from the interest it charges
students paying back their college debt. The figure is 43 percent higher
than an initial estimate of $35.5 billion. The news comes days after
Democratic Sen. Elizabeth Warren introduced a measure that would lower
student loan interest rates to 0.75 percent — the same rate given
to big banks. Rates for government-subsidized Stafford student loans are
set to double in July to 6.8 percent.

 

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