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Student 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
by Workaccount2 3y ago
Student 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.