Last week, the Wall Street Journal ran a story by reporter Josh Mitchell, with a headline asking an alarming question: “Is the U.S. Student Loan Program Facing a $500 Billion Hole? One Banker Thinks So.”That’s a large and worrisome number. Surely a hole that large is exactly the sort of thing we don’t want our government to be facing, and if a banker is concerned it must be very serious indeed.The banker in question, a former JPMorgan executive brought in by Donald Trump’s Secretary of Education, Betsy DeVos, had examined the federal student loan program, and determined that the government was making overly rosy assumptions about future repayment. He found “a growing gap between what the boo
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