Is the Government Just taxing Middle-class College Students?

[noimagination]

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I recall the government stating that the reason to change the laws regarding college loans was to get the “middle man” (private banks) out of the business of making a profit on middle-class kids going to college. Now, all of those college loans go through the Department of Education (which is acting as a federal bank, of sorts).

This is what the report I cited in post #13 discusses. Guaranteed private loans required a larger federal subsidy than direct loans, based on either risk-adjusted or U.S. Treasury discount rates.

But the so called “profits” are being generated, just not by shareholders of banks. That is a lot more money than is required to administer the program. It is being used for other education related priorities, not for the college education of the middle-class kid taking out the loan.

Can you prove any of this?</p>