Government books $41.3 billion in student loan profits

Discussion in 'Small Talk' started by Kendrick, Nov 25, 2013.

  1. Kendrick

    Kendrick Crispix Porzingis Staff Member

    The federal government made enough money on student loans over the last year that, if it wanted, it could provide maximum-level Pell Grants of $5,645 to 7.3 million college students.


    The $41.3 billion profit for the 2013 fiscal year is down $3.6 billion from the previous year but it's a higher profit level than all but two companies in the world: Exxon Mobil cleared $44.9 billion in 2012, and Apple cleared $41.7 billion.


    "It's actually neither accurate nor fair to characterize the student loan program as making a profit," Education Secretary Arne Duncan said during a July conference call with reporters after the Free Press and other news media reported on profits from student loans.

    http://www.usatoday.com/story/news/nation/2013/11/25/federal-student-loan-profit/3696009/
     
  2. 96lioness

    96lioness UAPB Golden Lioness!!!





    I certainly believe this! When my oldest started at SU, she didn't "qualify" for a Federal Pell Grant because of my income. For her first 2 years, it was like this, and while she did get scholarships, I still had to pay out of pocket about half of her tuition. It wasn't until this year she qualified for a Pell Grant, and that was only because I now have 2 children in college. But the government only allowed each of my daughters to receive only $2000 (a piece) in Pell Grants, and that's split by semester.

    I don't complain about it because 1) I'm thankful to God for being able to help my girls earn their degrees, and 2) it's money put to excellent use. But I do get angry (sometimes) when I think of how me and all the middle-class, hardworking citizens are carrying this country, and it's our children that are denied funds that will help make college more affordable for them. The government does make profit from the interest on student loans but won't grant children of middle-income class at least half of this well-deserved entitlement, let alone a full amount Pell Grant.
     
    Last edited: Nov 25, 2013

  3. Kendrick

    Kendrick Crispix Porzingis Staff Member

    Your story seems all too familiar.

    The problem, though isn't the student loans, but the rising cost of college, which creates the need for borrowing.
     
  4. 2kool

    2kool Well-Known Member

    I doubt college costs will ever get under control.

    Which is why I'm shocked and saddened that more HBCU's aren't screaming from the mountain tops at how much more valuable an education is from their Universities.

    Same state-mandated curriculum...better student-to-faculty ratio...most faculty members are more accessible.

    Yeah, you have to put up with negro problems, but you can't beat the price.
     

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