Is the regulators earning money from your own student education loans?

Is the regulators earning money from your own student education loans?
this is cnnmoney.

It’s not hard to see why new 43 million Us americans having beginner financial obligation score riled up when they pay attention to the federal government is actually making money off their funds.

«That’s probably one of the only things the government shouldn’t make money off — I think it’s terrible that one of the only profit centers we have is student loans,» Donald Trump told The fresh Hill in July.

Hillary Clinton’s campaign site says she’s going to «significantly cut interest rates therefore the government never profits regarding college or university student education loans.»

Loss or profit?

By the you to definitely estimate, the latest government education loan system you can expect to make a profit out of $step 1.six billion inside 2016, according to Congressional Funds Place of work.

That’s not a huge profit considering that the program lends aside on $100 million per year. Although CBO also systems it manage keep earning profits annually along the 2nd several years.

That’s the formal calculation that regulators funds experts are needed — legally — to utilize whenever estimating the cost of new federal financing system.