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by paulpauper 481 days ago
yes, this 100% . the discounts , scholarships, etc. make a big difference. This is why a college college degree is a better deal then the doom and gloomer naysayer pundits insist. With federal student loans, you are borrowing at close to the prime rate, but for average people, not hedge funds. This is a great deal assuming you graduate. Even 'soft' subjects from middling schools confer a ROI.
1 comments
eszed 481 days ago
> close to the prime rate

Where do you get that? Federal loans are currently 6.5% for undergraduate, 8-something% for graduate. Private loans are higher than that.

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leereeves 481 days ago
> Federal loans are currently 6.5% for undergraduate, 8-something% for graduate

And the current prime rate is 7.5%.

https://www.wsj.com/market-data/bonds/moneyrates

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eszed 481 days ago
Ah, fair point. My 2008 graduate school loans were 6.8%, when the prime rate was 3-something%, so I'm reacting to old grudges. (And, of course, much higher interest rates, which I still haven't thoroughly assimilated.) Looks like the formula changed ~10 years ago, which is a good thing.

I retract my previous comment. Thank you.

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