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Government profits on student debt

Despite the havoc a generation of heavily indebted young people promises to wreak on the economy, commentators on the student debt crisis have for sometime pointed out that the federal government has considerable interest in student borrowers remain in the red. New figures further back this up. As the Huffington Postreported Tuesday, the Education Department is expected to earn $33.5 billion off student loans made during the 2013 fiscal year, according to budget documents. "The agency’s Direct Loan program delivered a $24 billion profit on loans made in 2012, and nearly $27.5 billion on 2011 loans. All told, over the last five fiscal years, the Education Department has generated $101.8 billion in profit from student borrowers, thanks to low borrowing costs for the government and fixed interest rates for students, budget documents show," reported HuffPo, noting, "Some student advocates have charged that the department is profiting off the backs of students."

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