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How is it any different than getting into credit card debt or taking out a loan for a Ferrari? Banks are _supposed_ to evaluate the risk of a loan, not just gi
by RobertRoberts 6y ago
How is it any different than getting into credit card debt or taking out a loan for a Ferrari?
Banks are _supposed_ to evaluate the risk of a loan, not just give it out without consideration.
- RhysU 6y agoFederal student loans have a fixed interest rate and therefore cannot be adjusted based on the risk of the borrower to the extent that a credit card or Ferrari loan can. Private student loans can adjust rates for risk. Should private student loans become increasingly expensive as voters' appetites for federally mandated loan forgiveness increase?
- RobertRoberts 6y agoPlenty of loans have a fixed interest rate. But you have a point that the loan is supposed to have federal backing/protections would make it harder to justify releasing these loans. But I would argue that predatory pricing against students would negate that.
- RhysU 6y agoI didn't mean fixed vs variable rate loans. Sorry for being unclear. I meant that Congress sets the allowed Federal student loan rates. https://www.forbes.com/sites/robertfarrington/2020/05/12/2020-2021-federal-student-loan-rates-drop-to-record-lows https://www.forbes.com/sites/robertfarrington/2020/05/12/202...