Canadian Student Loan & Consolidation Profits
The Canadian government is making a tidy little profit on their student loan program, get the gory details in this article.
According to a report by the Halifax Daily News the Canadian government will make about $550 million in 2009 and 2010 on the interest from student loans. The Canadian government says that after including write off the interest only partially pays for the program but most seem pretty skeptical about this one.
The feds also hired the same company responsible for the gun registry catastrophe to handle the customer service for their student loan program awarding a $270 million contract. It is reported that they are to "review" the program.
I personally believe that the government is making a small profit on these unsecured student loans but it looks like some publications are blowing it out of proportion. We all know that a percentage of these loans are going to default and chop into the profits.
