Sen. Warren claims government will make $51 billion from student loans - msnNOW

"That's more than wrong. It's obscene," Sen. Elizabeth Warren (D-Mass) argued, speaking to a group of young activists Wednesday at Generation Progress's Make Progress National Summit. Sen. Warren claims that the federal government will make $51 billion in profits off of student loans. That number sounds pretty high, but then again, Americans owing over $1 trillion in student debt is pretty outlandish. The figure came from a Congressional Budget Office spreadsheet. However, as the Washington Post points out, the sum does not technically measure profits, but rather negative subsidies that the government will have to feed back to create future loans. Warren was promoting her Bank On Students Loan Fairness Act, a one-year fix that would give student borrowers the same interest rates as big banks, 0.75 percent, while Congress comes to an agreement. — By Michaela Gianotti [Source]

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