In October 2014, Elizabeth Warren appeared on Bill Maher’s HBO program Real Time. Warren made the case against the U.S. “taxing” young people with student loans. The United States government not only recoups its student loan investment. The government makes an enormous profit off the students to whom it lends.
One little slice of student loans
On the loans made between 2007 and 2012 (“one little slice of the loans,” according to Warren), our government will bring in $66 billion in pure profit. That is after repayment of the loan principal, bad debt write-offs, and all administrative costs are taken into account.
$66,000,000,000. Not bad work if you can get it.
Should the government profit off young people with student loans?
Student loans cannot be discharged in bankruptcy, even in cases where repayment means saddling a young person with a high monthly payment for 20 or even 30 years. And there is strong evidence that student loan debt is adversely affecting the housing market.
Does it make sense for the government to make a huge profit off the young people who we’re counting on to move our country forward in the coming generations?