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Guess Whose Profit is Bigger Than Exxon Mobil's or Apples?

by Jerry Bader

That would be the Federal Government's student loan operation . Well, with all due apologies to Bill Clinton, it depends on what your definition of "profit" is. The Detroit Free Press reports that the profit of the loan program for fiscal 2013 is $41.3 billion dollars. In July, Education Secretary Arne Ducan stated clearly that the program makes no profit. 

The Freeps number comes basically from profit as we all know it; money coming back in from student loans made, minus expenses. The program's defenders say that model doesn't reflect the true costs or the progarm and that there is virtually no profit. However, in responding to the Freep's story, the Education Department sent a lot of fluff about trying to make education affordable and didn't deny the number.

Student loan debt is now $1.2 trillion, more than the nation's total credit card debt. This is a bubble that will burst and when it does, it might dwarf the housing bubble.