More from Bloomberg:
Student debt now comprises 45 percent of federally owned financial assets. Of course, that doesn’t include assets owned by the Federal Reserve, and it doesn’t include real assets like land. Still, it’s a startling figure.
This trend worries me. Why? Because when the government owns student loans, it has every incentive not to fix the country’s student-debt problem.
Consider the sheer size of the revenue that the government earns from student-loan interest payments. In 2013, it was $51 billion -- almost 2 percent of total federal revenue for that year. That’s more than two-thirds of the lifetime cost of the entire F-22 fighter jet program!
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