Digging Deeper Into Lender Profits

Inside Higher Ed: "Although Democratic leaders still aren’t saying so officially, financial aid lobbyists said Tuesday that lawmakers have decided how to pay for their plan (estimated at about $6 billion) to cut the interest rate on many student loans in half over five years — and that the legislation they will introduce this week to do so (H.R. 5) would do so by cutting several subsidies that the federal government now pays to banks, guarantee agencies and other participants in the federal guaranteed loan program."