Blumenthal blasts government student loan profit

AP Photo/Harry Hamburg

HARTFORD, Conn. (AP) — Connecticut U.S. Sen. Richard Blumenthal says he is astonished that the federal government earned an estimated $66 billion in profit from student loans originated between 2007 and 2012.

Blumenthal was reacting to a government report that revealed the profit Friday. A previous congressional report estimated that the government will pocket an additional $185 billion in profits on new student loans made over the next 10 years.

Blumenthal said Saturday that the new report confirms that the government has continued to make “humongous profits off college students,” adding to the crushing mountain of debt that drags down America’s future.

Blumenthal and eight other U.S. senators committed to wring government profits out of student loans and address the $1.2 trillion in outstanding student loan debt they say is crushing families and putting a strain on the economy.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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