Article from the University Herald
The U.S. Department of Education is turning in a major profit and has forecast making about $127 billion over the next decade from federal student loan borrowers.
According to the Huffington Post, the Education Department (ED) reported the forecasted profits with the Congressional Budget Office. The rates of federal student loans are also expected to rise next academic year.
Under a new law tying the customer’s rate to what it costs the government to borrow, industry experts expected a higher price for borrowers later rather than sooner. However, borrowing rates are expected to be higher than they were the previous year starting with the 2015-2016 academic year.