Student Loan Profits Call for Gov't to Exit Loans

This week Shahein Nasiripour at The Huffington Post reported on the huge projected profit from the government run student loan program. The article mostly focuses on how wrong it is for the government to be profiting from lending money to college students and whether these projected profits could be used to lower the interest rates charged to students. A better view of the situation, however, is offered by Jordan Weissmann over at Slate, who points out that most of the projected profits over the next decade will come from loans to graduate students. Realizing that it is doctors, lawyers, and MBAs who will be producing these profits puts things in a rather different light. However, the relevant point is that all these issues are raised only because the government got involved in what should be a private sector business.