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"guaranteed pay back to the banks"

Not as of June 30, 2010: part of the Patient Protection and Affordable Care Act AKA Obamacare was using the profits from those student loans to fund it, the government is originating all "guaranteed" loans after that date.




The taxpayer savings don't fund Obamacare but rather go back into higher education:

"The Congressional Budget Office said the direct-lending approach would save taxpayers about $61 billion over 10 years. Roughly $40 billion of the savings will be redirected to higher education. Education programs will get an additional $10 billion from the health care package."

http://www.nytimes.com/2010/03/26/us/politics/26loans.html


OK, 1/3 of the profits, per CBO scoring.

Assuming the arrangement isn't changed in the future.

There was a reason to attach it to Obamacare after all, it helped make the CBO's numbers, artificial as they are, add up.




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