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.
8 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!”
oldvet50 · September 1, 2026 at 8:24 am
I think student loans are a pathway to office for politicians that promise all these freebies. Student loans are a good idea if they are administered properly. They should be available for fields of study that are foreseen to be in demand in the future (not gender studies, for example). When you enter the military, they will not give you whatever job you want – it is based on their need and your aptitude. They should be granted to people that have shown they might succeed through prior grades in secondary school. They also should be distributed like a construction loan, you draw funds as you proceed successfully. But that won’t get votes, so why would a politician consider it.
Divemedic · September 1, 2026 at 9:02 am
Instead of letting some bureaucrat decide, why not just have a rule that anyone who doesn’t make enough money to repay the loan, the school has to reimburse the loan for them?
It's just Boris · September 1, 2026 at 11:41 am
Or get the government entirely out of the student loan business. Let the schools themselves, alumni, and private corporations decide what they are willing to fund or subsidize through scholarships and loans; and let those loans be discharged through bankruptcy. Not being able to get a loan at under 23% for gender axiom studies or whatever, would be a clue that one’s proposed major might not lead to the desired lifestyle.
Some rando · September 1, 2026 at 11:24 am
The main question is why is the federal government in the student loan bidness? If any one thing has made college too expensive it’s that.
Steve · September 1, 2026 at 12:17 pm
Let’s not be so hasty here. I could always enroll in a useless masters program, borrow at 2% and use the money to invest. Lather, rinse, repeat until I am a rich man. And, who knows, some leftie could always end up back in office and “forgive” the debt, and it’s all pure profit.
WallPhone · September 1, 2026 at 4:51 pm
Why has the cost of education increased beyond the rate of inflation? Basic supply and demand.
Offering federalized student loans increased demand and prices matched.
Capping the interest just makes the problem worse.
Democrats: “our policy position made things worse. We must not have done it hard enough! Let’s go it even more!”
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