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Podcast: The College Investor Audio Show
Episode: Does The Government Profit Off Of Student Loans?
Description: It should be a simple question - does the government profit off of student loans? But depending on who you ask, the federal government either earned a profit or lost money on federal student loans prior to the pandemic. The answer depends on political and accounting perspectives. During the pandemic, however, the payment pause and interest waiver has caused the federal government to lose money on federal student loans, regardless of the method used to calculate the subsidy rates. By forgoing nearly $5 billion a month in interest, the federal student loan program swung from a profit to...