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It’s not often that we’re surprised by a government spending statistic, but what Breitbart News‘ Mike Flynn reported over the past weekend about one particular line item within the U.S. Treasury Department’s annual financial report for the U.S. government floored us.
Tucked away in the report, however, was a surprising fact. Student loans now make up 37 percent of the total assets of the U.S. government. In some ways, a major business of the U.S. government now is getting students to take out loans to pay for college.
The total value of assets held by the federal government is $3.2 trillion. The government’s assets include its cash, gold reserves, property, and the value of land, equipment, and inventories. The lion’s share of the government’s assets, though, is the value of loans it has issued. The total value of government-issued loans is over $1.2 trillion, almost 40 percent of its total assets.
By far the largest loan program run by the feds is the student loan program. Last year, the federal government held as assets almost $1.1 trillion in student loans. This is up almost 10 percent from 2014. The federal government earned almost $1 billion on these loans last year.
Meanwhile, the U.S. government’s total liabilities is over $21 trillion, putting its official net worth at roughly minus $18 trillion.
Among those liabilities is the over $1 trillion worth of national debt that has been incurred because the U.S. government borrows the money it uses to make student loans. Approximately one out of every ten dollars that the U.S. government has borrowed since Barack Obama became the U.S. President has been for the purpose of sustaining its student loan “business”.
And with an annual revenue of $1 billion, the U.S. government is getting a return on its “investment” of something on the order of 0.1%. When you consider that one in four of the student loans issued by the U.S. government are delinquent, it is highly likely that the U.S. government is actually losing money on its student loan business.
U.S. Treasury Department