Wednesday, May 18, 2022

February 14, 2019: Federal Deficit Balloons - Dept. of Education Blows It

 

2/14/19: President Trump is more than halfway through his term and still a little lacking in his promise to shrink the federal deficit to nothingness and drown us in black ink. Candidate Trump once promised he could wipe out the nation’s entire $19 trillion in debt in eight years, if we gave him two terms. 

The Congressional Budget Office has just announced that the deficit isn’t shrinking, despite a healthy economy. 

It just passed $22 trillion. It is predicted that an additional $12.4 trillion will be added by the end of 2029.

 

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ALSO ANNOUNCED: The Inspector General for the Department of Education announces that the department’s student loans unit has failed to hold companies that manage more than a trillion dollars’ worth of Federal Student Aid loans to account for breaking rules meant to protect borrowers. 

This in turn has allowed those companies to pocket government dollars that should have been refunded to borrowers. 

“It’s hard to look at this as anything other than completely damning,” Seth Frotman of the Student Borrower Protection Center tells NPR. “This is the most damaging in a long line of investigations, audits, and reports that show the Department of Education is asleep at the switch when it is responsible for over a trillion dollars of student loan debt.”

 

If you’d like to read about some of the predators in the student loan business, and some of the frauds who run various for-profit colleges, click on this link. My “favorite” is the school in Florida, FastTrack, which hired former strippers as student recruiters, before going belly up in the wake of an investigation.




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