Ann Schnoebelen at the Chronicle of Higher Edumacation reports on some well-meaning group of activists who imagine that the US Government should just allow the kids to refinance their student debt in much the same way that a home owner refinances a mortgage. Silly dreamers. Don’t you know that the US Government makes a big profit on these loans? Don’t you know that they’ve already spent it?
If Congress tries to allow this, the Congressional Budget Office will come up with a price tag that won’t be pretty. The extra interest charges bring in billions of extra revenue for the government. It’s good to be the King when you can borrow money at close to 0% and then loan it back out at 6%, 7%, 8% or even higher.
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