Interest Rates On Some Student Loans Might Double Within Weeks

David Jesse with the Detroit Free Press reports that the government is projected to make billions in profits off student loans in 2013, and if it actually hits the projected $50 billion mark this year, it will be more profitable than (or at least keep pace with) Exxon Mobil, which made close to $45 billion in profits last year, as Jesse writes, making Exxon the most profitable company in the nation.

But when it comes to many other companies both public and private, it looks like the government has them beat.

All of this profit on the backs of young borrowers and their parents – that seems to be the consensus among those struggling to make loan payments while finding a decent-paying job in this recovering U.S. economy.

Jesse quotes 26-year-old Kristy Currier:

“I can understand private companies making profits off student loans – part of mine are private – but it doesn’t make sense for the government to be making huge profits off the backs of young students just trying to make themselves employable in a terrible economy.”

Indeed, the economy has been slow to recover, and the next hurdle to clear regarding student loans is the interest-rate hike, which could mean more profit for the government if lawmakers fail to stop it.

As Jesse reports, interest rates on unsubsidized student loans are set to double within weeks – automatically – unless Congress acts. This will certainly become more of a burden on young borrowers, given the fact that student loans are generally not dischargeable in bankruptcy, and there are few other options for dealing with them.

Source: Government projects to make $50B in student loan profit

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Interest Rates On Some Student Loans Might Double Within Weeks