You have to ask yourself just why is this happening. Especially so when the government can and did lend banks billions of dollars at less than one percent interest rate with none of the guarantees attached to student loans.
The answer is so simple. This is happening because the money from banks finds expression and is translated into the political gold of campaign funds and jobs for the families of those connected to politicians at state and federal levels.
Something like this happens only because it is in the best interest of those making the laws for it to happen. There has been a lot of hype/spin about fixing this or that on the student loans but in the end it was all DOA because it is in neither the politicians or the banks best interest to do so.
It’s Official: Student Loan Rates Will Double Monday: http://abcnews.go.com/Business/ready-student-loan-rates-double-monday/story?id=19524843#.Uc7kksHD_IU
So, I typed into Google a search term “It’s Official: Student Loan Rates Will Double Monday?” and the top three links were to
Wells Fargo: Looking for money to help pay for your graduate degree? Wells Fargo makes it easy to borrow up to the cost of education (minus other financial aid) to pay for eligible expenses such as tuition, housing, books, and more.1 With a Wells Fargo graduate student loan, you can get money for your graduate education now and not make any payments while you’re in school.2
- No payments until six months after you leave school3
- Competitive interest rates — choose between fixed and variable interest rate options
- Most graduate students can qualify on their own good credit without a cosigner
- Interest rate discounts, including relationship discount4
- It’s quick, easy, and free to apply online https://www.wellsfargo.com/jump/EFS/studentloans#2
With approximately 1,700 branches in the U.S., SunTrust is a lender you can trust when considering a private student loan. We’ve helped hundreds of thousands of students, and we can help you, too. It’s fast and secure to apply online – right from your home or dorm room: Get started »
And finally from Discover who is tied to GE (http://www.businesswire.com/news/home/20120809005670/en/GE-Capital-Retail-Bank-Sam%E2%80%99s-Club-Extend) which to the best of my knowledge has not paid a nickel in taxes over the last decade:
Find the right private student loan.
From college to graduate school, we can help you cover up to 100% of tuition, housing, books and more.
- Fixed interest rates as low as 5.49% APR
- Variable interest rates as low as Prime Index + 0.00% (currently 3.25% APR)
A Proposed Fix for High Student Loan Interest Rates: http://www.businessweek.com/articles/2013-06-27/a-proposed-fix-for-high-student-loan-interest-rates