Student Loan Rates

[JohnnySavage]

The government loans money to Wall Street at less than 1%, but is poised to loan money to students at 6.4%.

Funny, huh?

 

[semen4her]

The rich won't create jobs if they have to pay more in taxes than students do.

It's simple economics, from what I've read here on lit.

Million/ Billion dollar corporations can't compete with a waitress' salary, that's including tips of course.

Now if you have a serious question...

 

[warrior queen]

Our HECS (higher education contribution scheme) loans are 'indexed' at 6%/annum, compounded monthly.
They don't call it interest or a loan, but that's what it is.

 

[trysail]

The government loans money to Wall Street at less than 1%, but is poised to loan money to students at 6.4%.

Funny, huh?

I wouldn't lend money to Yahweh/Bhudda/Jesus Christ for 10 years at 1.62% per annum.


The only people lending money to the U.S. government for 5 years at 0.73% per annum are idiots.


Students are bad credit risks.



http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/

 

[JohnnySavage]

I wouldn't lend money to Yahweh/Bhudda/Jesus Christ for 10 years at 1.62% per annum.


The only people lending money to the U.S. government for 5 years at 0.73% per annum are idiots.


Students are bad credit risks.



http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/

Yea... buying bonds that put money into the fed are kinda the opposite of the government loaning money. But otherwise your post is spot-on.

 

[KRCummings]

Yea... buying bonds that put money into the fed are kinda the opposite of the government loaning money. But otherwise your post is spot-on.

Now you've done it. He's gonna post a graph and use all kinds of colored fonts. Just please don't quote him again so I don't have to suffer because of your negligence.

 

[Adre]

I wouldn't lend money to Yahweh/Bhudda/Jesus Christ for 10 years at 1.62% per annum.


The only people lending money to the U.S. government for 5 years at 0.73% per annum are idiots.


Students are bad credit risks.



http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/

I've made lots of money in Treasurys this year. You're just another bond idiot. Learn how the market works before posting your drivel, please.

 

[blobfish]

Pardon. Double post.

 

[trysail]

I've made lots of money in Treasurys this year. You're just another bond idiot. Learn how the market works before posting your drivel, please.

As Warren Buffett put it, "Government bonds are now priced to offer return-free risk."

 

[blobfish]

Buying Treasurys is like having sex with a whale shark; even if you're successful, it can still eat you.

 

[JohnnySavage]

Buying Treasurys is like having sex with a whale shark; even if you can do it, it can still eat you for lunch.

Buying Treasurys is like having sex with a whale shark; even if you're successful, it can still eat you.

Zip it, Candi-Ler.

 

[Frizzle_Fry]

Buying Treasurys is like having sex with a whale shark; even if you're successful, it can still eat you.

Whale sharks are plankton feeders there high speed....they won't eat anyone.

 

[Adre]

As Warren Buffet put it, "Government bonds are now priced to offer return-free risk."

Quoting smart people does not make you any smarter. You continue being clever while I make money

 

[trysail]

Now you've done it. He's gonna post a graph and use all kinds of colored fonts. Just please don't quote him again so I don't have to suffer because of your negligence.

Only because you asked so politely. I wouldn't have thought to do it otherwise.


It's bound to be a terrific idea to lend money at a rate well below the rate of inflation and at the lowest 5-year rate in the history of U.S. Treasury securities. Yeah, riiiiiiiiiiiiiiiiiiiight !!

http://research.stlouisfed.org/fredgraph.png?g=8iG


​

 

[JohnnySavage]

I'm talking about the amount of interest the government charges, not the amount of interest it pays!!!

FFS!

Stay on topic, asshats.

 

[coachdb18]

Only because you asked so politely. I wouldn't have thought to do it otherwise.


It's bound to be a terrific idea to lend money at a rate well below the rate of inflation and at the lowest 5-year rate in the history of U.S. Treasury securities. Yeah, riiiiiiiiiiiiiiiiiiiight !!

http://research.stlouisfed.org/fredgraph.png?g=8iG


​

Nice chart...

 

[JohnnySavage]

WSJ Prime Rate - 3.25%
Federal Discount Rate - 0.75%
Fed Funds Rate - 0.25%
11th District Cost of Funds - 1.140%


Why should students pay 6.4%?

 

[JohnnySavage]

If you accept the thought that a college graduate will earn a million dollars over a working life more than a high school graduate - at a 20% marginal tax rate, that's an increase of $200,000 in federal income taxes. It doesn't even count the increase in sales and property taxes a college grad will pay vs. someone without a degree.

 

[trysail]

WSJ Prime Rate - 3.25%
Federal Discount Rate - 0.75%
Fed Funds Rate - 0.25%
11th District Cost of Funds - 1.140%


Why should students pay 6.4%?

Just because Bernanke is trying like hell to ignite another real estate bubble doesn't mean those are interest rates that reflect any kind of risk or default premium.


Would you lend a substantial amount of money for 20 years to a bunch of English majors ?

 

[trysail]

If you accept the thought that a college graduate will earn a million dollars over a working life more than a high school graduate - at a 20% marginal tax rate, that's an increase of $200,000 in federal income taxes. It doesn't even count the increase in sales and property taxes a college grad will pay vs. someone without a degree.

I'd rather lend money to a bunch of apprentice plumbers. They've got better prospects and are probably more honest.


You've actually swallowed the education racket's buncombe. Those statistics are going to be very substantially revised in the coming years if there's any honesty ( which may be doubtful if the fox remains in charge of guarding the chicken shed).

 

[semen4her]

I'd rather lend money to a bunch of apprentice plumbers. They've got better prospects and are probably more honest.


You've actually swallowed the education racket's buncombe. Those statistics are going to be very substantially revised in the coming years if there's any honesty ( which may be doubtful if the fox remains in charge of guarding the chicken shed).

Ooooooh, government conspiracy!

 

[coachdb18]

If you accept the thought that a college graduate will earn a million dollars over a working life more than a high school graduate - at a 20% marginal tax rate, that's an increase of $200,000 in federal income taxes. It doesn't even count the increase in sales and property taxes a college grad will pay vs. someone without a degree.

That's assuming of course, that the guy who worked to put himself through college to make the extra million dollars isn't ridiculed as being 'the rich', and have some high school dropout just drop by his house with a bullhorn and a thousand others like him to take it by force because they feel entitled.

 

[derpybody]

That's assuming derp..

derrrrrrrrrrrrrrrrrp!

 

[blobfish]

Whale sharks are plankton feeders there high speed....they won't eat anyone.

It's just an analogy!

 

[Frizzle_Fry]

It's just an analogy!

No it's not.....it doesn't make any sense because whale sharks don't eat people, they eat plankton.