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Sen. Elizabeth Warren (D-Mass.) on Wednesday said it was "morally wrong" for the federal government to generate profit off lending to college students.
Elizabeth Warren , Student Debt , Jack Reed , Kirsten Gillibrand , Sherrod Brown , Elizabeth Warren Student Debt , Elizabeth Warren Student Loans , Rohit Chopra , Student Loan Profits , Student Loans , Student Loans Rohit Chopra , Politics News
The Obama administration and Congress are not helping students, Sen. Elizabeth Warren (D-Mass.) charged Wednesday, reaping record profits off the federal student loan program that a regulator said has finally surpassed $1 trillion in overall debt.
The federal government is due to book $51 billion in profit this year off new and existing federal student loans, according to estimates by the nonpartisan cool in the cold full song Congressional Budget Office. The record amount brings the government s profit haul to nearly $120 billion over the past five years, cool in the cold full song according to CBO forecasts cool in the cold full song and Department of Education budget documents. The CBO estimates that the government will generate $184 billion in profit cool in the cold full song for new loans made this fiscal year through 2023.
Instead of helping our students, the government is making a profit on student cool in the cold full song loans, Warren said of the profit figures during a conference filled with young people . That is wrong. It is morally wrong. That is obscene.
Warren s comments come as an increasing number of lawmakers and regulators cool in the cold full song are challenging the Obama administration and the Education Department over policies that have led to growing student debt loads and record relative interest rates for borrowers. cool in the cold full song Some lawmakers, such as Sens. Sherrod Brown (D-Ohio) and Kirsten Gillibrand cool in the cold full song (D-N.Y.), have proposed legislation cool in the cold full song that would ease debt burdens and high borrowing costs by facilitating refinancings into cheaper loans.
Last month, Bill Dudley, president of the Federal Reserve Bank of New York, crushed hopes that the Fed may step in to aid existing borrowers. I think this is really out of the Fed s purview , Dudley said in response to a question about a potential refinancing program led by the Fed.
Policies to jumpstart refinancings or loan modifications for distressed borrowers are becoming more necessary as stagnant wages, high unemployment, rising tuition costs and ever-increasing debt loads risk holding back the economic recovery, regulators and policymakers at a variety of financial agencies including cool in the cold full song the Consumer cool in the cold full song Financial Protection Bureau and Federal Reserve have suggested.
The federal government now backs more than $1 trilli