Obama Student Loan Policy Nets $51 Billion Profit for Government

save the banks

For all the talk of “gifts” being handed out to students in the 2012 election, it looks like most of the giving is coming from the students to the government. When the Feds get money for nothing and then charge students 3, 4% (soon to be 6.8%) on college debt that’s a good revenue recipe.

The big banks get almost free money. The federal government gets almost free money. Students however don’t get free money.

The real problem is that the Fed is depressing interest rates. No one should be getting free money. But this is another example of the insiders winning and the outsiders, desperate to compete in the marketplace, not getting as good a deal.

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