This theory makes sense but since the loan is essentially risk free, why are pri... | Hacker News

Hacker Newsnew | past | comments | ask | show | jobs | submit

anthlax on July 10, 2023 | parent | context | favorite | on: Tuition costs have risen 710% since 1983

This theory makes sense but since the loan is essentially risk free, why are private student loan interest rates roughly 10%?

jedberg on July 10, 2023 [–]

Those are the private loans not backed by the government. The government ones are basically at the prime rate or less to fund the administration of the program.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact