The more college students take out loans, the more the federal government benefits. (Credit: StudenLoans.gov)

The more college students take out loans, the more the federal government benefits. (Credit: StudentLoans.gov)

The U.S. Treasury Department’s recently released report on government assets and liabilities shows the feds winning big when college-age students take out school loans.

In fact, the federal government’s biggest draw for its asset bucket is student loans. Fully 37 percent of the U.S. government’s $3.2 trillion in assets comes from its issuance of student loans. In dollars and cents, that mean $1.2 trillion of federal assets hails from the college-age crowd and the school loans they, or their parents, take on, Breitbart reported.

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In just one year’s period, between 2014 and 2015, the federal government’s student loan assets rose by 10 percent, to nearly $1.1 trillion. And the government’s earnings on those loans was $1 billion last year alone.

The federal government, as part of the Obamacare package that passed Congress, took over student loans from the private sector in 2010.

“The Democratic majority decided, well look, while we’re at it, let’s have another Washington takeover,” said Sen. Lamar Alexander, during those congressional discussions of Obamacare, Breitbart reported. “Let’s take over the federal student loan program.”

Now, private banks are only involved in the management of service of loans; the loans originate with the government. And that makes the politicization of student debt, and the promise of free college that’s coming from Democratic camps, a curious message.

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As Breitbart’s Mike Flynn wrote: “Hillary Clinton and Bernie Sanders employ rhetoric on the issue of college loans as if there is some mysterious and pernicious third party taking advantage of students struggling to pay for college. This is balderdash. … The most direct way the federal government could affect college affordability is to tell universities and colleges that it won’t issue loans aboave a certain amount of tuition. This would obviously horrify a major block of Democrat voters, but it would do far more to broaden accessibility to college.”

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