The conversation between human and AI assistant.
Why are college loan interest rates so much higher than mortgage and auto loans, and the rate the banks borrow from the federal government?
I'm wondering about college loan interest rates. They seem to be much higher than mortgage and auto loans, as well as the rate that banks borrow from the federal government. Why is that?
That's a good question. One reason college loan interest rates are higher could be because they are considered riskier loans than mortgages and auto loans. Another reason could be that colleges and universities are generally not willing to take on the financial burden of underwriting the loans themselves, so the government and private lenders step in and charge higher interest rates to protect themselves.