You may have heard that lawmakers in Washington struck a deal last week to preserve the current low student-loan rates for at least another year. You may not have heard that for fiscal year 2013 the federal government booked $32 million in revenues—profits, if it were a private entity—for every $100 million in loans for students. The year before, it booked revenues of $4.4 billion on its $233 billion mortgage-insurance program for low-income families.
These high returns make it appear that Uncle Sam is an unusually skilled lender. In reality, they are a testament to the fantasy world of government accounting.
Read more at The Wall Street Journal