Student Loan Proposal Would Avert Deadline, But Raise Borrowing Costs, Boosting Government Profit

Student Loan Proposal Would Avert Deadline, But Raise Borrowing Costs, Boosting Government Profit:

Student Loan Proposal Would Avert Deadline, But Raise Borrowing Costs, Boosting Government Profit

by Joy Resmovits

WASHINGTON -- Student borrowers and their families would pay more to finance college under a proposal pushed by a bipartisan group of senators, increasing the federal government’s profits despite warnings over record student debt levels.

The proposal comes as the federal government has been recording mounting profit off the backs of students and their families, raising questions about the lawmakers’ claims to help students afford higher education. The Department of Education has booked nearly $120 billion in profit over the last five fiscal years thanks to record