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> student loan relief inflationary and unfair The problem with US student loans is usury. Student Loan interest rates in the US can be as high as 9-13%. The g
by Someone1234 8mo ago
> student loan relief inflationary and unfair
The problem with US student loans is usury.
Student Loan interest rates in the US can be as high as 9-13%. The government can borrow at 3.36% which even if we assume a 20% overhead is 4.03% to the borrower. Other countries/governments do a scheme similar to this, and it makes repayment realistic.
I'm certain someone will respond telling me the difference between Subsidized, Unsubsidized, PLUS, and private loans which completely missing the point: There shouldn't be a private entity that needs to turn a profit on the backs of students begin with, it is immoral. If you remove the private for-profit entity, the loan-type distinction goes away.
It isn't uncommon to read stories from people, who graduated and are in good jobs, and had no gaps in repayments that are now on 300%+ of their original borrowed amount.
- happyopossum 8mo agoYour argument kinda falls apart with the observation that private loans often have waaaay lower interest rates than federal ones... Typical private loans start in the 3% range, vs 6.4 for the lowest Federal ones.
- irishcoffee 8mo agoFederal loans can be discharged after 10 years of public service, private loans cannot. Hence the higher rate. Well, one reason for a higher rate.
- Someone1234 8mo agoCan you think to the "3% range" private student loans? But regardless, my "argument" is for lower, fairer, interest rates that students are actually expected (and can realistically) repay. One where profit isn't made. Who makes the profit is largely irrelevant; the students suffer the same either way.