Is the U.S. Student Loan Program Facing a $500 Billion Hole? One Banker Thinks So.

In 2018, Betsy DeVos, then U.S. education secretary, called JPMorgan Chase & Co. Chief Executive Jamie Dimon for help.

Repayments on federal student loans had come in persistently below projections. Did Mr. Dimon know someone who could sort through the finances to determine just how much trouble borrowers were in? Months later, Jeff Courtney, a former JPMorgan executive, arrived in Washington. And that’s when the trouble started.

According to a report he later produced, over three decades, Congress, various administrations and federal watchdogs had systematically made the student loan program look profitable when in fact defaults were becoming more likely. The result, he found, was a growing gap between what the books said and what the loans were actually worth, requiring cash infusions from the Treasury to the Education Department long after budgets had been approved and fiscal years had ended, and potentially hundreds of billions in losses.

An I reading the chart right. Profits during Obama Presidency, losses during Bush & Trump presidencies?

Loaning hundreds of thousands of dollars for students to go to school and get jobs that don't pay enough to pay back the loans. They should have just given people money to buy lottery tickets.

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