Govt makes $51 Billion profit from student loans

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evolutionvision

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Obama Student Loan Policy Reaping $51 Billion Profit

The Obama administration is forecast to turn a record $51 billion profit this year from student loan borrowers, a sum greater than the earnings of the nation's most profitable companies and roughly equal to the combined net income of the four largest U.S. banks by assets.

Figures made public Tuesday by the Congressional Budget Office show that the nonpartisan agency increased its 2013 fiscal year profit forecast for the Department of Education by 43 percent to $50.6 billion from its February estimate of $35.5 billion.

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.

The estimated increase in the Education Department's earnings from student borrowers and their families may cause a political firestorm in Washington, where members of Congress and Obama administration officials thus far have appeared content to allow students to line government coffers.

The Education Department has generated nearly $120 billion in profit off student borrowers over the last five fiscal years, budget documents show, thanks to record relative interest rates on loans as well as the agency's aggressive efforts to collect defaulted debt. A spokesman from the Education Department did not respond to a request for comment. A Congressional Budget Office spokesman could not be reached for comment after normal business hours.
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Student Loans = Next Financial Crisis
 


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There isn't anything wrong with the government profiting off of interest on student loans...the problem with student loans is all the dumb fucking kids getting huge loans to get a degree in some unprofitable unemployable degree field like creative writing or french poetry or some shit.

Just like you wouldn't get approved for a million dollar mortgage for a house while working at mcdonalds, you shouldn't get a quarter million dollar loan to go study silent comedy films at NYU.
 
dchuk said:
There isn't anything wrong with the government profiting off of interest on student loans...the problem with student loans is all the dumb fucking kids getting huge loans to get a degree in some unprofitable unemployable degree field like creative writing or french poetry or some shit.

Just like you wouldn't get approved for a million dollar mortgage for a house while working at mcdonalds, you shouldn't get a quarter million dollar loan to go study silent comedy films at NYU.
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So you see nothing wrong with the gov injecting money into the education system to drive up real prices and then reap huge profits from this distortion of the market? Money that was either/and extorted from hard working citizens or printed thus devaluating your savings? You find nothing wrong with them making education harder to achieve, in so helping foment the ridged social order that is being gradually and methodically imposed by the elites? :throwup:

You do realize the US is falling behind the rest of the world because of this hard lined mentality, promoted through moral arguments like the ones you hold while implemented based on purely pragmatic methods (pragmatic for the benefit of the short sighted elites)

Moralists are the #1 reason the puppet masters can control the crowds so easily... it is time we start to be pragmatists too.
 
bluecoyote said:
yep- this will be the trend of student loan defaults.. so what does this actually do to the profit numbers

government does not produce.. they confiscate

I say confiscate because they have the power to lock you up if you dont pay
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NO they fucking do not.
 
greenleaves said:
So you see nothing wrong with the gov injecting money into the education system to drive up real prices and then reap huge profits from this distortion of the market? Money that was either/and extorted from hard working citizens or printed thus devaluating your savings?
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And if you're a bank, you literally have nothing to lose. You can loan out gobs of money to folks majoring in Women's Studies, art, or creative writing, fully confident that you'll get your money back, and then some.

It doesn't matter if the borrower can't get a "real" job with his degree. Even a job as a barista, janitor, or gas station attendant will do fine from the bank's perspective.

Why? Because...

With mortgage defaults, banks seize and resell the home. But if a degree can't be sold, that doesn't deter the banks. They essentially wrote the student loan law[*], in which the fine-print says they aren't "dischargable." So even if you file for bankruptcy, the payments continue due. Hence these stern word from Barmak Nassirian of the American Association of College Registrars and Admissions Officers. "You will be hounded for life," he warns. "They will garnish your wages. They will intercept your tax refunds. You become ineligible for federal employment." He adds that any professional license can be revoked and Social Security checks docked when you retire. We can't think of any other statute with such sadistic provisions.
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It's a wonderful racket. It's a guaranteed profit. Weird that consumers of schooling don't realize what's happening.



* Kind of like health care. lol
 
JakeStratham said:
And if you're a bank, you literally have nothing to lose. You can loan out gobs of money to folks majoring in Women's Studies, art, or creative writing, fully confident that you'll get your money back, and then some.

It doesn't matter if the borrower can't get a "real" job with his degree. Even a job as a barista, janitor, or gas station attendant will do fine from the bank's perspective.

Why? Because...




It's a wonderful racket. It's a guaranteed profit. Weird that consumers of education services don't realize what's happening. lol
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Sad to see so many view 'nothing wrong with this'.
 
dchuk said:
There isn't anything wrong with the government profiting off of interest on student loans...the problem with student loans is all the dumb fucking kids getting huge loans to get a degree in some unprofitable unemployable degree field like creative writing or french poetry or some shit.

Just like you wouldn't get approved for a million dollar mortgage for a house while working at mcdonalds, you shouldn't get a quarter million dollar loan to go study silent comedy films at NYU.
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This

My generation had too much of "if you don't go to college you'll end up homeless", "there is no competition, everybody wins", "just follow your dreams", and "do what you love and the money will come". Throw in a recession and old people not being able to retire after losing their savings and you get this big mess.
 
dchuk said:
There isn't anything wrong with the government profiting off of interest on student loans...the problem with student loans is all the dumb fucking kids getting huge loans to get a degree in some unprofitable unemployable degree field like creative writing or french poetry or some shit.

Just like you wouldn't get approved for a million dollar mortgage for a house while working at mcdonalds, you shouldn't get a quarter million dollar loan to go study silent comedy films at NYU.
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While I agree with that part*...

.....

This is the same problem we saw before with the housing market. The banks approved EVERYONE, did a bunch of things to get everyone approved for houses they couldn't afford, etc. And look what happened, it all crashed...

.....

If you compare it. The government is funding degrees to people who shouldn't be getting them, so there's zero qualifications.. Not to mention, the government is looking at each degree and saying xyz degree averages $x/per year. We need to cap how much we can lend for that field. And it's not the just the gov, it's companies like Sally Mae, etc. Just loaning people $100K for an degree in art, knowing the graduating student will make $29K/year, if* they can even find a job.

.....

And since there is ZERO risk, the gov/corps don't care. They can take advantage of EVERYONE. How many people are really going to get a hardship approved through court to remove the entire student loan? Very, very few. That debt is going to stick around with that person for life until it's paid off.. Talk about the ultimate SCAM/setup.. Being able to collect interest/$$$ on someone for LIFE, and they can't do a damn thing to stop it, unless they pay it off.. And they KNOW most won't be able to pay the full amount. There was one lady who owed $45K, she paid it down for 10 years, and amounted $xK in interest, now she owes $45K still, lol.

.....

Also their is one more thing to argue about.. It's the schools.. A good chunk of these don't really give a shit about your education, they just want the $$$$. They also know what's going on and are capitalizing off of it, raising rates, etc. They are in on this shit.

My thoughts..
 
dchuk said:
There isn't anything wrong with the government profiting off of interest on student loans...the problem with student loans is all the dumb fucking kids getting huge loans to get a degree in some unprofitable unemployable degree field like creative writing or french poetry or some shit.
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Yes yes you stupid goyim. There's nothing wrong with creating value out of nothing. It's those stupid uneducated kids fault! Huehue Shalom
 
greenleaves said:
So you see nothing wrong with the gov injecting money into the education system to drive up real prices and then reap huge profits from this distortion of the market? Money that was either/and extorted from hard working citizens or printed thus devaluating your savings? You find nothing wrong with them making education harder to achieve, in so helping foment the ridged social order that is being gradually and methodically imposed by the elites? :throwup:

You do realize the US is falling behind the rest of the world because of this hard lined mentality, promoted through moral arguments like the ones you hold while implemented based on purely pragmatic methods (pragmatic for the benefit of the short sighted elites)

Moralists are the #1 reason the puppet masters can control the crowds so easily... it is time we start to be pragmatists too.
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I don't "believe" in college. I don't think it's a right, nor do I think it's what everyone should do. I would argue 50-75% of people in college right now shouldn't be there.

I'm not sure why your reply escalated so much in regards to mine to be honest. I think education and student loan reform is absolutely needed right now because college is a clusterfuck. My sister just got into a great university and even with 40k+ a year in scholarships, she's STILL going to owe about 15k a year. Thank god she's studying something worth a damn (international business).
 
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