Prior to the pandemic interest pause, student loans were breaking even, and making a tidy profit on interest for graduate loans. thecollegeinvestor.com/39673/does-t...

Does The Government Profit Off Of Student Loans?

Depending on who you ask, the government either earned a profit or lost money on federal student loans. Here's how it works.

Even if he was right about it being “bad debt,” financial institutions were never the ones issuing it in any real sense. The government effectively paid banks for their branding, while all of the risk was held by taxpayers.