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I have mixed feelings about student loan relief. However, I find it super interesting hearing people talk about how terrible high inflation or high interest ra
by logankeenan 3y ago
I have mixed feelings about student loan relief.
However, I find it super interesting hearing people talk about how terrible high inflation or high interest rates for loans/mortgages are today. All while student loan interest rates have been higher for decades.
- Workaccount2 3y agoStudent loan interest rates have to be higher because credit isn't a factor in determining loan eligibility. So it's basically the pooled risk rate where good debtors cover the additional risk of poor debtors.
- logankeenan 3y agoThat makes sense if they behaved like typical loans. However, student loans can’t declare bankruptcy, refinance, etc… The good debters are not covering the bad debters in this case.