[chasd00]

> Student loans currently carry no risk. They can't be discharged. Interest is the payment to the lender to accept risk.

you make a good point, if there's no risk there should be no interest. Or at worst, the interest rate should track COLA adjustments to social security. Some basic adjustment relative to inflation so the lender gets back what they lent out.

Now that schools can pay their athletes I hope the rest of the student body take notice and start asking questions about school funds allocation. It should make it plain as day to the average student that their school has plenty of cash and choses to force them into debt.

[gruez]

>you make a good point, if there's no risk there should be no interest.

Even loans to the US government pays interest. If you meant "no premium beyond the risk-free rate", why would anyone want to lend to students, when they have to deal with the hassle of dealing with lenders and the political risk of it getting discharged, when they can just led to the federal government instead?

[downrightmike]

College grads also pay on average 10x the taxes above a HS grad, so there is a huge disconnect on the repayment the lenders get. Once you pay the SL amount in taxes, you should be done.