Yesterday I tweeted out a story about the class of 2013 paying more than 300% for their degree than someone graduation 30 years ago. Today I came across a completely different article that puts the first one into perspective.
The Obama administration is forecast to turn a record $51 billion profit this year from student loan borrowers, a sum greater than the earnings of the nation’s most profitable companies and roughly equal to the combined net income of the four largest U.S. banks by assets.
Figures made public Tuesday by the Congressional Budget Office show that the nonpartisan agency increased its 2013 fiscal year profit forecast for the Department of Education by 43 percent to $50.6 billion from its February estimate of $35.5 billion.
Maybe we should put that into a little perspective. What’s the most profitable business in the world? Oil. Er, well it used to be until the United States Government became the world’s biggest Shylock operation.
Exxon Mobil Corp., the nation’s most profitable company, reported $44.9 billion in net income last year. Apple Inc. recorded a $41.7 billion profit in its 2012 fiscal year, which ended in September, while Chevron Corp. reported $26.2 billion in earnings last year. JPMorgan Chase, Bank of America, Citigroup and Wells Fargo reported a combined $51.9 billion in profit last year.
You know, someday we’re going to have to explain this to our children and grandchildren. We’ll just tell them American Idol was too distracting to have cared.