[Plumres]

The loans are a big problem, but the loan shark rates the banks are charging for the loans is outrageous. My daughter is being charged 11% for a private student loan. The rates should be more in line with a mortgage rate. She is lucky enough to have a great job because of her degree, but one big thing holding up the recovery is the young do not have much left after paying their loans to move out from mom and dad.

[cableguymn]

My daughter is being charged 11% for a private student loan. The rates should be more in line with a mortgage rate.

---

Why?

Lets look at the differences..

I default on my mortgage the bank can take the house.

I default on a student loan (I have none) the bank can take... Oh crap. they can’t take anything.

The interest rate reflects the risk taken. She defaults on the loan and there is nothing the bank can take to recover the money loaned. She even gets to keep what the bank has paid for.

Perhaps she should re-fi her loan to the government backed ones. My wife has hers through “direct loans” the rate is around 4%.

[Mouton]

My daughter is being charged 11% for a private student loan.

Well now, she is getting two educations. The first at the school. The second from learning to read and understand what she signed for. Works for me.

My family and I came to the conclusion the only way I could attend college was to live at home, commute to the local private college and work virtually full time as “loans” were not an option at that time. I did, got degreed, and then enlisted in the army, something foreign to most of our entitled youth these days. After the army, I used my newly acquired skills with my degree, found a great occupation and never looked back.