<<<The low 6.8 percent rate -- private loans for students cost about 12 percent -- was itself the result of a federal subsidy. And students have no collateral that can be repossessed in case they default, which 23 percent of those receiving the loans in question do. The maximum loan for third- and fourth-year students is $5,500 a year. The payment difference between 3.4 percent and 6.8 percent is less than $10 a month, so the "problem" involves less than 30 cents a day.>>>
This calculation assumes that ALL 4 year educations will cost roughly 20k, period. It doesn't take into account a HUGE percentage of college educations cost far more than that when you factor in the ever-increasing tuitions, books, living expenses, and other school related items. Then if you go to graduate school you could spend another 4 to 6 years racking up more debt. I work with young doctors who are nearly a quarter mil in education debt. A good many of them MUST go into sub-specialties as a way of a few more years of deferment and as a way of eventually making more money to pay those loans.
Simply raising an interest rate, even if it's 30 cents a day, isn't the answer. The question is how did we get to this point where education now comes with the same loan extremes as a house?
The answer to that is a government and banking system that joined forces NOT to make sure we have a well-educated society, but to pad its pockets and enslave generations of young people in debt before they've even had a chance to get a job. And universities couldn't be happier. They can raise tuitions as high as they want. If a student can get an education loan for 20k, why not 30k or 40k or 50k? The sky's the limit.
Like healthcare, education is out of control and is now just a money-making racket feeding off the public.