Seeking solutions to the student aid mess - Lynn O'Shaughnessy, Money Watch

There are many reasons why the system needs to be overhauled, but let's start with this one: the federal government is profiting tremendously when it lends money to college students and their parents. According to a report released earlier this year by the Congressional Budget Office, this is how much cash the government is pocketing for each dollar that someone borrows through the federal loan program: Federal profit for each dollar lent Subsidized Stafford Loan 12.49 cents Unsubsidized Stafford Loan 33 cents Parent PLUS Loan 49 cents GradPLUS Loan 54.84 cents http://www.cbsnews.com/8301-505145_162-57584503/seeking-solutions-to-the-student-aid-mess/