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Federal 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
by RhysU 6y ago
Federal 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...