The Trump administration is addressing the U.S. government’s $1.45 trillion student loan portfolio, including hiring consultants to advise on selling all or portions of the portfolio to private investors.
The Wall Street Journal, citing “administration officials familiar with the matter,” said the move comes after a surge of defaults on loans and individuals taking advantage of federal debt-forgiveness plans that have led to reduced federal coffers.
The Journal reported:
The Education Department has hired the consulting firm McKinsey & Co. to study how much money could be lost if low repayment rates persist, an agency spokeswoman said. Meantime, President Trump’s top economic advisers in the White House are studying ways to improve the program’s finances, senior administration officials said.
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These are just the outstanding loan amounts.
ReplyDeleteThere shouldn't be 1.45 TRILLION dollars in assets of all the colleges combined!
It's about time. There is no f*#!ing reason why the Fed needs to charge high rates of interest for student loans.
ReplyDeleteMaybe the universities that charge outrageous fees should subsidize the loans.
If you take out a loan you should repay it without question. Same as a mortgage. A car loan. If you take out a student loan and use your education to obtain a successful job your wages should be attached to pay off your loan.
ReplyDeleteThe Fed bankers are all private for-profit operations.
ReplyDeleteThey are feeding on the public.