Warren: Profits from student loans are ‘obscene’

Speaking to young activists on Wednesday, Sen. Elizabeth Warren (D-Mass), didn’t mince words when describing the money the government makes off student loans.

“The federal government will make $51 billion in profits off student loans,” she said at Generation Progress’s Make Progress National Summit . “That’s more than wrong. It’s obscene.”

The rate increase will only affect loans that were issued after July 1, 2012, but overall, educational debt is an issue for approximately 37 million student loan borrowers, with the majority of borrowers in 2012 with outstanding balances less than $10,000.

“Instead of helping our students, the government is making a profit on student loans,” she said. “We can hear some booing at this point.” .... http://www.washingtonpost.com