First, a word from our elected Representatives:
Let’s say she is successful at capping student loan interest at 2%. You are a lender, and you have funds to invest. You are looking for a low risk vehicle to place those funds in.
- You can invest it by lending it to a student and get 2% per year, but won’t ever be repaid your principal.
- You can buy a 12 month T-bill at 4.15%. Wash, rinse repeat
- Or a 10 year treasury note at 4.75%
The only lender who can offer 2% student loans is the Federal government, but only by subsidizing them using money they are in turn borrowing at double the rate they are lending it out at. It currently borrows at roughly 4%–5% for comparable maturities, then bears servicing costs, delinquency, default, forgiveness, and interest-rate risk. Charging borrowers 2% therefore transfers part of the loan’s economic cost to taxpayers.
Department of Education lending costs $3.3 billion each year using Federal Government accounting practices, and $15.0 billion under fair-value accounting, which incorporates market risk more fully and is the systems businesses use.
Our elected politicians have become idiots who get elected solely by promising people free shit. Noone thinks about how it will be paid for.
2 Comments
J J · September 1, 2026 at 7:14 am
Stupid politicians in both parties, praised by their stupid constituents. How can Republicans elect such a dimwit female? I’m so sick of females taking over government and then spouting off their inane nonsense as if their veteran state or tricking a majority of voters to vote for them gives them some sort of credibility.
SiG · September 1, 2026 at 7:16 am
She’s not my representative so maybe I don’t pay enough attention, but it’s the only stupid thing I can recall her saying. I only see her because they like having her on news shows and that’s because she’s far hotter than the other women in congress.
The real problem is having given complete control of the economy over to the Federal Reserve and their “constant benign inflation”. It pretends to be economic growth for everyone but the only thing that’s growing is the stack of paper you need to buy things. And the ability of politicians to say, “we had the best growth ever!”