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No, the federal government does not profit off student loans
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Date: May 20th, 2013 6:41 PM Author: Racy main people church http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/20/no-the-federal-government-does-not-profit-off-student-loans/?print=1 (http://www.autoadmit.com/thread.php?thread_id=2261420&forum_id=2#23237493) |
Date: May 20th, 2013 6:55 PM Author: Autistic Lay he acts like a "default" on a student loan is the same as a default on any other type of loan. makes a big deal about these loans being riskier than t-bills, pointing at the current default rate of 4% to 5%. but that's bullshit because they can't be discharged in bankruptcy and the government can garnish wages up to 20%, so there's little to no charge off expense. (http://www.autoadmit.com/thread.php?thread_id=2261420&forum_id=2#23237531) |
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Date: May 20th, 2013 6:57 PM Author: lavender soul-stirring menage he also doesn't prove his point. he cites some discrepancy in methods being not reliable but doesn't tie it in to there not being a profit. (http://www.autoadmit.com/thread.php?thread_id=2261420&forum_id=2#23237537) |
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Date: May 20th, 2013 7:00 PM Author: Autistic Lay and no mention of the profits recorded by STU and SLM over the last 5 years on their enormous FFELP loan portfolios. if they were making billions, why wouldn't the government? (http://www.autoadmit.com/thread.php?thread_id=2261420&forum_id=2#23237548) |
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Date: May 20th, 2013 7:01 PM Author: Bearded brunch genital piercing (http://www.autoadmit.com/thread.php?thread_id=2261420&forum_id=2#23237556) |
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Date: May 20th, 2013 7:03 PM Author: Seedy striped hyena gov was still guaranteeing the defaults (http://www.autoadmit.com/thread.php?thread_id=2261420&forum_id=2#23237566) |
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Date: May 20th, 2013 7:05 PM Author: Autistic Lay there's not much difference in a federal guarantee versus non-discharge-ability and wage garnishment. the only true student loan defaults are when the person dies, like in these cases:
http://www.huffingtonpost.com/c-cryn-johannsen/student-loan-debt-suicides_b_1638972.html |
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Date: May 20th, 2013 7:06 PM Author: Seedy striped hyena the difference is getting a $20k check from the gov when the kids defaults v. having to chase his ass for the next 30 years - the servicing costs on the latter are substantial (http://www.autoadmit.com/thread.php?thread_id=2261420&forum_id=2#23237580) |
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Date: May 20th, 2013 7:10 PM Author: Autistic Lay ok, but this difference is insignificant. even if you lopped off 10% of the profits those lenders made they still make billions. (http://www.autoadmit.com/thread.php?thread_id=2261420&forum_id=2#23237609) |
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Date: May 20th, 2013 7:12 PM Author: Provocative mauve trailer park antidepressant drug "the servicing costs on the latter are substantial"
And tacked onto the non-dischargeable loan. |
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Date: May 20th, 2013 7:36 PM Author: Bearded brunch genital piercing (http://www.autoadmit.com/thread.php?thread_id=2261420&forum_id=2#23237757) |
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Date: May 20th, 2013 7:00 PM Author: comical roast beef garrison this is a dumb accounting gimmick.
it assumes student loans come from treasury inlays. one could just easily argue they come from fed taxes in which case all interest is govt profit |
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Date: May 20th, 2013 7:11 PM Author: Seedy striped hyena even if the taxes are $0 cost, you need to take into account interest cost in determining a WACC for the Treasury (http://www.autoadmit.com/thread.php?thread_id=2261420&forum_id=2#23237615) |
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Date: May 20th, 2013 7:16 PM Author: comical roast beef garrison I have a HELOC that charges 5% interest and I lend out to lendingclub at 12%. If instead, I lended out at 3%, less than the HELOC rate, I would still be making a profit. My ability to lend to lendingclub is tied to my salary, not the HELOC.
Unless this implies the government is flat broke and basically playing arbitrage between Treasuries and student loans. |
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Date: May 20th, 2013 7:12 PM Author: Provocative mauve trailer park antidepressant drug "And because they’re below the market rate, that costs the federal government money."
This is fucking retarded.
There would be an opportunity cost, but that's not what people are talking about. |
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Date: May 20th, 2013 7:36 PM Author: Exciting Self-centered Associate Solid boomer flame (http://www.autoadmit.com/thread.php?thread_id=2261420&forum_id=2#23237756) |
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Date: May 20th, 2013 8:11 PM Author: Razzmatazz blathering cuckold elastic band Shocking that KIKE is sucking the dixk of the Feds. (http://www.autoadmit.com/thread.php?thread_id=2261420&forum_id=2#23237925) |