Elizabeth Warren: Student Loans Should Have Same Rate Big Banks Get

[Yo_Mama]

29. The banks aren't involved in new student loans. The taxpayer is involved

The federal government is directly funding student loans, and it has been since 2010.

The taxpayer is expected to lose its ass on this program.
http://www.cbo.gov/sites/default/files/cbofiles/attachments/43913_StudentLoans.pdf

The 15% of private student loans remaining will of course continue to decline as the federal government keeps lending.

Loss ratios on student loans have always been high, but they are climbing much higher. When the federal government took over the student loan program in 2010, it figured that it would make a profit eventually.

Not only has it not happened, it isn't going to happen. Law changes don't have any impact, because the problem is with the job opportunities and wages paid to graduates. The federal government is now writing off interest on NON-DEFAULTED student loans under the income-based repayment program, and after 25 years, it is going to write off the loan balance. Or ten years, if the borrower is able to find a government job. Which is deeply unjust, btw, because why someone making more as a public worker should get that type of a benefit while some poor barista is expected to pay for 15 more years is beyond me.