Government student loan program more profitable than Exxon Mobil - WDAM-TV 7-News, Weather, Sports-Hattiesburg, MS

US government set to make record profits from student loans, more than top corporations

Student loan debt has exceeded $1 trillion, but the Department of Education is expected to make more than $50 billion in profit from loans. Student loan debt has exceeded $1 trillion, but the Department of Education is expected to make more than $50 billion in profit from loans.
  • Government shutdown endNational politicsMore>>

  • In Comey memos, Trump talks of jailed journalists, 'hookers'

    In Comey memos, Trump talks of jailed journalists, 'hookers'

    Friday, April 20 2018 1:03 AM EDT2018-04-20 05:03:06 GMT
    Friday, April 20 2018 1:56 PM EDT2018-04-20 17:56:05 GMT
    (AP Photo/Susan Walsh). Copies of the memos written by former FBI Director James Comey are photographed in Washington, Thursday, April 19, 2018. President Donald Trump told former FBI Director James Comey that he had serious concerns about the judgment...(AP Photo/Susan Walsh). Copies of the memos written by former FBI Director James Comey are photographed in Washington, Thursday, April 19, 2018. President Donald Trump told former FBI Director James Comey that he had serious concerns about the judgment...

    President Donald Trump told former FBI Director James Comey that he had serious concerns about his first national security adviser, Michael Flynn.

    More >>

    President Donald Trump told former FBI Director James Comey that he had serious concerns about his first national security adviser, Michael Flynn.

    More >>
  • Judge to hear arguments about delaying Stormy Daniels case

    Judge to hear arguments about delaying Stormy Daniels case

    Friday, April 20 2018 2:22 AM EDT2018-04-20 06:22:52 GMT
    Friday, April 20 2018 1:55 PM EDT2018-04-20 17:55:49 GMT
    (AP Photo/Mary Altaffer, file). FILE - In this April 16, 2018, file photo, adult film actress Stormy Daniels speaks outside federal court in New York. A federal judge is set to hear arguments about whether to delay the case of Daniels, who claims she h...(AP Photo/Mary Altaffer, file). FILE - In this April 16, 2018, file photo, adult film actress Stormy Daniels speaks outside federal court in New York. A federal judge is set to hear arguments about whether to delay the case of Daniels, who claims she h...
    President Donald Trump's lawyer, whose office was raided by the FBI last week, is seeking to delay a court case brought by a porn actress who claims she had an affair with the president.More >>
    President Donald Trump's lawyer, whose office was raided by the FBI last week, is seeking to delay a court case brought by a porn actress who claims she had an affair with the president.More >>
  • AP-NORC Poll: Americans expect Russia tension will get worse

    AP-NORC Poll: Americans expect Russia tension will get worse

    Friday, April 20 2018 8:04 AM EDT2018-04-20 12:04:51 GMT
    Friday, April 20 2018 1:54 PM EDT2018-04-20 17:54:56 GMT
    Graphic shows results of AP-NORC Center poll on foreign relations and Trump approval; 2c x 5 inches; 96.3 mm x 127 mm;Graphic shows results of AP-NORC Center poll on foreign relations and Trump approval; 2c x 5 inches; 96.3 mm x 127 mm;
    Americans are largely pessimistic about U.S. relations with Russia and China in the next year, and despite signs of diplomatic progress with Kim Jong Un over nuclear weapons, nearly half also expect things to get...More >>
    Americans are largely pessimistic about U.S. relations with Russia and China in the next year, and despite signs of diplomatic progress with Kim Jong Un over nuclear weapons, nearly half also expect things to get worse with North Korea.More >>

(RNN) - As student loan borrowers are getting crushed under massive student debt, the federal government's student loan program is set to turn about $51 billion in profit, according to predictions from the Congressional Budget Office.

The Department of Education's profit total is more than what Exxon Mobil, the world's most profitable corporation, made last year, according to a comparison by the Huffington Post.

The energy giant posted $44.9 billion in 2012, which was just $300 million short of the all-time annual earnings for any company, which was achieved by Exxon Mobil in 2008.

The interest rate on federal student loans is set to double to 6.8 percent this summer, which is one of the reasons the government is set to enjoy big profits from student loans.

The national student loan debt between private and government loans has exceeded $1 trillion, making it the second-largest debt in the country. Only the mortgage loan debt is higher. However, government student loan debt is less flexible because borrowers are not allowed by law to default.

News of profits exceeding the world's richest corporations comes at a time when many are calling for lower interest rates or freezes on what borrowers have to pay.

Sen. Elizabeth Warren (D-MA) has been one of the most vocal proponents of lowering interest rates, and she has garnered much support for her plan to lower government student loan interest rates to the same rate that big banks borrow government money: 0.75 percent.

"Right now, a big bank can get a loan through the Federal Reserve discount window at a rate of about 0.75 percent. But this summer, a student who is trying to get a loan to go to college will pay almost 7 percent," Warren said in a speech she gave on the Senate floor recently.

She added: "In other words, the federal government's going to charge interest rates nine times higher than the rates they charge the biggest banks - the same banks that destroyed millions of jobs and nearly broke the economy. That isn't right."

An online petition in favor of Warren's plan to reduce government student loan interest rates to the same rate as big banks has garnered more than 250,000 signatures.

Despite the massive support for Warren's plan, others say it does little to address the student debt problem because it would only apply to new borrowers and last for one year, until a new solution is found.

"We're already in a $1 trillion student debt hole and today's graduates are entering a less-than-stellar job market with an average $26,000 worth of student loan debt. We bet they would appreciate a break on interest rates, too," Business Insider reporter Mandi Woodruff wrote.

Although student borrowers have been struggling to pay back loans, the Department of Education has made nearly $120 billion in profits over the past five fiscal years, Huffington Post reported.

Copyright 2013 Raycom News Network. All rights reserved.

 

  • Local NewsLOCALMore>>

  • HPD releases new details in capital murder of Deborah McGee

    HPD releases new details in capital murder of Deborah McGee

    Friday, April 20 2018 12:35 PM EDT2018-04-20 16:35:33 GMT
    Andrew Presley (Photo source: HPD)Andrew Presley (Photo source: HPD)

    Hattiesburg police have released new details in the capital murder investigation of 63-year-old Deborah McGee.

    More >>

    Hattiesburg police have released new details in the capital murder investigation of 63-year-old Deborah McGee.

    More >>
  • Pine Belt prep baseball schedule/results (April 16-23)

    Pine Belt prep baseball schedule/results (April 16-23)

    Thursday, April 19 2018 11:27 PM EDT2018-04-20 03:27:33 GMT
    Source: Flickr Creative CommonsSource: Flickr Creative Commons

    Pine Belt prep baseball results/schedule (April 16-21)

    More >>

    Pine Belt prep baseball results/schedule (April 16-21)

    More >>
  • New skatepark headed to Laurel

    New skatepark headed to Laurel

    Thursday, April 19 2018 10:55 PM EDT2018-04-20 02:55:55 GMT
    Design of the new skatepark headed to Laurel (Photo source: city of Laurel.)Design of the new skatepark headed to Laurel (Photo source: city of Laurel.)

    A portion of Laurel's Daphne Park will soon be transformed into a skater's paradise. "We are taking bids for the skatepark that's going to be built in Daphne Park," Mayor Johnny Magee said. Boards shredding Pascagoula's Skatepark on the coast is an example of what you will see in the coming months in Laurel. "I'm really excited about it," local business owner Sean Stewart said.  Stewart said he is ecstatic to see the city and mayor behind th...

    More >>

    A portion of Laurel's Daphne Park will soon be transformed into a skater's paradise. "We are taking bids for the skatepark that's going to be built in Daphne Park," Mayor Johnny Magee said. Boards shredding Pascagoula's Skatepark on the coast is an example of what you will see in the coming months in Laurel. "I'm really excited about it," local business owner Sean Stewart said.  Stewart said he is ecstatic to see the city and mayor behind th...

    More >>
Powered by Frankly