In simple language, Senator Elizabeth Warren
explains how the rip-off works. Sallie Mae uses very inexpensive loans backed by you, the taxpayer, and uses them to subsidize student loans made by private banks at a much (MUCH) higher rate of interest.
“The new loans will make a profit of $184 billion over the next 10 years, and it turns out that even the so-called subsidized loans make a profit of about 14 cents on the dollar,” she said.
You really should watch this one.