(Investor's Business Daily) The federal student loan program was supposed to make money. Instead it will cost tens of billions of dollars, forcing hardworking Americans to subsidize college-educated deadbeats. Who do we have to thank for that?
A report from the Department of Education notes that the net cost of the federal government's direct loan program is quickly heading into the red. This program, mind you, was supposed to be a moneymaker for the government, as students paid back federal loans with interest.
But as it turns out, borrowers have been flocking toward various loan forgiveness programs, by which the government will lose money, erasing gains from other loans. The report shows that the direct loan program went from a $25 billion surplus in 2012 to less than $5 billion by 2015.
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