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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?


To: DMaA who wrote (488004)5/21/2012 3:08:42 PM
From: DMaA1 Recommendation  Respond to of 794015
 
It is a mistake to call these student loan fees an "interest rate".

Interest is the cost of using someone else's money. The price is set in a free market with borrowers bidding against other potential users of this money.

What we are talking about here is an arbitrary sliding fee. The price is completely divorced from economics. It is purely political.