There is more student loan debt outstanding — $1 Trillion — than credit card debt! And the government is making a huge profit on it — an estimated 36 percent profit margin, reports the Huffington Post
“Here’s the real shame: The government gets to borrow for 10 years paying less than 2 percent interest on U.S. Treasury notes, while students must pay 6.8 percent interest on the loans they get from the government!
“The government is ripping off college students, leaving them with a burden of debt that averages $27,000, and for many exceeds $100,000, while they are forced to pay above-market interest rates.
“Students will spend so much time and pay so much interest getting out of student loan debt that most will never be able to afford to buy a home. Today’s homebuyers can get a 3.5 percent, 30-year fixed-rate mortgage. But today’s students may never get to take advantage of today’s low mortgage rates, because the government demands twice that rate to pay off their student loan debt. Continue reading “Let’s actually talk about student loans”