Wednesday, June 29, 2016

"Who Got Rich Off the Student Debt Crisis"

... a very, very good piece.

At a Senate hearing in 2014, Sen. Elizabeth Warren, the Massachusetts Democrat, quizzed the head of the Federal Student Aid office, James W. Runcie, about the government’s loan income.
Warren: “My question is … where do those profits go? Do they get refunded back to the students, who paid more than was necessary for the cost of their loans? Or are they just used to fund government generally?”
Runcie: “They are used to fund government generally. They do not come back specifically into the program.”
Warren: “We’re charging more interest than we need to run the student loan program, and there’s no mechanism to refund that money to the students. …  I don’t think the student loan program should be designed so that it’s making profits for the federal government.”

1 comment:

  1. Hell, somebody's gonna profit from misery. So you bet they'll foster and protect it.