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?
Why do the banks get such a low interest rate when borrowing from the federal government?
Banks can borrow money from the Federal Reserve at a low, predetermined interest rate because they are considered crucial to the overall stability of the economy. By providing low-interest loans to banks, the Federal Reserve can help make sure that businesses and individuals have access to credit when they need it. Additionally, banks can use the funds they borrow from the Federal Reserve to lend to other businesses and individuals, which can help stimulate economic growth.