What these students fail to understand is that the low interest rates are a subsidy from tax payers. Students have intrinsically poor or no credit, and only the federal loan guarantee makes the low interest rates from banks possible.
Tax payer subsidized anything is a bad practice because the government is taking from the successful and re-distributing it. If one wants growth in the economy, the best approach is to ENCOURAGE THE SUCCESSFUL. Encouraging the dependents grows the cadre of people riding in the wagon.
If an education is a great and wonderful thing, then student loans would be given out freely by banks. It should be able to stand on it’s own merits.
Works both ways.
If a bank can have a guaranteed return of 2 percent from the government, then there’s no reason to lend anything to anyone else.