Apr 28, 2014
The U.S. federal government directly profits off the increasing student loan debt that is crippling the future of young people. In 2013, the federal government booked 41 BILLION DOLLARS in profit from interest on student loans.
Congress and the Obama administration hit a new low for deception and cynicism when they passed a law in 2013 to “fight” rising student loan debt.
When the law was passed, interest rates did go down – for ONE year. But for the next NINE years, interest rates will go up! In July 2014, interest rates on new student loans will rise by almost one third and are projected to keep rising annually.
Under the old law, interest charges would have been less for students, according to a Congressional Budget Office analysis. Under the new law, the federal government is projected to rake in an additional 700 million dollars in profit.
The policy of both political parties to cut taxes on corporations goes hand in glove with the federal government making up that lost revenue off the backs of students and working people.
The younger generation is making the acquaintance of a very old saying: “With ‘friends’ like these, who needs enemies!”