Originally Posted by Val
Here's the latest idea to fleece students.

Elizabeth Warren wants to set student loans rates at the rates the big banks enjoy (currently <1%). The proposal in the first paragraph wants to set student loan rates at the 10-year Treasury rate plus three percent. The authors say that this is great because the current rate is 1.75%, so students would be paying <5%. grin grin grin

But...what will happen when Treasury rates go up? I think we all know what treasury rates looked like in the 70s. And the 80s (eek). And the 90s. And the 2000s. Err...

Perhaps I misunderstood. Perhaps ten-year Treasury rates have now found a permanent home below 2%. You know: T rates will always go down, just like home values were always going to go UP.

I don't think our economy will function if interest rates rise.

So, they will keep rates near zero until something really bad happens.