View Poll Results: Are student loan interest rates to high?

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Thread: Are student loan interest rates to high?

  1. #181
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by The Mark View Post
    I'm fairly sure that the community colleges in my area provide what are basically remedial courses for people with issues math and such.

    High school algebra and earlier, even.
    Quite right. I was referring though to 4 year colleges and universities.
    I think if Thomas Jefferson were looking down, the author of the Bill of Rights, on whats being proposed here, hed agree with it. He would agree that the First Amendment cannot be absolute. - Chuck Schumer (D). Yet, Madison and Mason wrote the Bill of Rights, according to Sheila Jackson Lee, 400 years ago. Yup, it's a fact.


  2. #182
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by The Mark View Post
    Guess I got lucky on the one I let myself get maneuvered into.

    As I have a Sallie Mae private loan with less interest than that.
    It all depends on who holds your sallie mae loan. As they are private, they can varry greatly. My wife has four, all through sallie mae. some are only 6 percent, some are 13 percent.
    Quote Originally Posted by calamity View Post
    Reports indicate that everyone knew he was hauling a bunch of guns up there. But, since you brought it up, there's something which should be illegal: guns that breakdown.

  3. #183
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by imagep View Post
    From the Bush era oil high, oil would have to go to $950 a barrel to match the rise in price we saw during the Carter/early Reagan era. With US oil production increasing, I doubt that's going to happen again. OPEC isn't the cohesive alliance it used to be and will probably never be again.

    Double digit inflation is possible, and that would cause double digit interest rates, but neither are likely.
    What is happening now is that we have used to reserve currency status of the dollar to export our inflation over to places like China. However, interest rates are about to rise and that will cause capital to flee such foreign markets and return here. Not only that but countries like China, India, Russia, and Brazil are making strong moves to trade amongst themselves without the dollar. The amount of traction that such events get may determine a corresponding amount of inflationary pressure on the dollar. Unless of course the Fed decides it is better to have another Great Depression or worse.

  4. #184
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by imagep View Post
    It's not gouging, but the government makes a profit off of student loans and almost every one eventually repays their loans in full with interest so there is really little risk factor to the government.

    I find that the student loan program is a reasonable compromise, between the federal tax payer having to subsidize individuals college or having a nation without ample college graduates - but there is no reason that the government has to run the program at a profit, and no reason that student loans can't be made at the same rates that banks can borrow money at.
    So how much does it cost the government to make these loans? To my knowledge, they are all administered by service providers, who obviously have to be paid.

    Have you seen any figures on what it costs to oversee these loans over their lifetime?

  5. #185
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by MildSteel View Post
    A six percent spread is gouging.
    Why? How much does it cost for these loans to be made and serviced? The article in USA Today provided the attractive headline, but read into the article and it indicates there is very little to no profit to the government - Like so many things, it depends on how one wants to apply the accounting.

    Frankly, I'd like to see the colleges and universities, the true gougers, taken to the mat over their outrageous screwing of students. It seems to me, the forces have been directed to go after the wrong villain.

  6. #186
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by MildSteel View Post
    I had posted earlier the rate range that you posted. In addition, there is a certain type of loan that a parent might take out to, for example, send their kid to medical school, or a graduate student. It is called a Federal Plus loan and that rate is a whopping 8.5% regardless of creditworthiness. That is a 6 percent spread over the highest rate the the government borrows money. It is gouging, no doubt about it.

    https://studentaid.ed.gov/types/loans/interest-rates
    What percentage of student loans fall into this highest rate category? Seems to me it would be a small number relative to all the others. If that is the case wouldn't it be inaccurate to imply there is a 6% spread on student loans?

  7. #187
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by KevinKohler View Post
    It all depends on who holds your sallie mae loan. As they are private, they can varry greatly. My wife has four, all through sallie mae. some are only 6 percent, some are 13 percent.
    If your wife has a 13% Sallie Mae loan, it's because she is deemed a credit risk.
    Horse sense is the thing a horse has which keeps it from betting on people. ~W.C. Fields

  8. #188
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by imagep View Post
    Absolutly.

    But I doubt that we will ever see the 18% prime rate again. Interest rates are a function of inflation and tend to follow inflation closely. The high inflation rates that we were experiencing during the late 70s and early 80s were the result of cost push inflation due to OPEC embargos which resulted in oil going from $12 to $80 in less than five years.
    I, on the other hand, don't doubt that anything is possible.

    Interest rates may never get to 18%, but they won't be as low as they are today much longer. That's why banks that historically kept their residential loans in portfolio are selling on the secondary market at record rates this year. Nobody wants to be sitting on a boatload of 30 year fixed 3.25% loans.
    Horse sense is the thing a horse has which keeps it from betting on people. ~W.C. Fields

  9. #189
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by The Mark View Post
    Guess I got lucky on the one I let myself get maneuvered into.

    As I have a Sallie Mae private loan with less interest than that.
    Since the inception of Sallie Mae over 40 years ago they have been the best route to take to get great interest rates on student loans. Anyone who has a Sallie Mae loan with a high interest rate has credit problems. Their credit scoring is actually much more lenient than most models.
    Horse sense is the thing a horse has which keeps it from betting on people. ~W.C. Fields

  10. #190
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    Re: Are student loan interest rates to high?

    Quote Originally Posted by Geoist View Post
    You care to prove me wrong?



    That is exactly what you support by defending the high interest rates.




    Your reading comprehension is lacking. I am not cheering student loan programs. I am criticizing the high interest rate that allows the DoE to take in tens of billions of dollars from struggling young citizens. That is a perfectly libertarian position.
    I don't even understand what you're trying to say. How do lower interest rates lead to high rates?

    And how does the DoE take in tens of billions of dollars from "struggling young citizens"? The "struggling young citizens" want to borrow money from the government (which should not be in the lending business to begin with) or government sponsored entities. What is the Constitutional right that "struggling young citizens" have to cheap loans from the government - or anyone for that matter?
    Horse sense is the thing a horse has which keeps it from betting on people. ~W.C. Fields

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