paddymcdougall
DP Veteran
- Joined
- Jul 17, 2013
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Well ocean, gouging is taking advantage of people with a need to charge them more than necessary. It is disgusting that a parent who wants to borrow $100,000 for medical school for his kid is forced to pay 8.5 percent interest when the government is paying 2.5 percent interest on a 30 year loan. That is a hell of a spread. That is gouging.
I agree. Private companies are different; they are there for profit. The govt. shouldn't try to make big profits on services they provide. They should charge an interest rate that covers their costs, including the costs of default. So maybe a couple percentage points above their cost of funds; not 6 points.