Graduate student loans are charged a 6.8%. This can be a barrier preventing our best students from getting an appropriate level of training. It reduces America's global competitiveness in areas that require advanced training. In 2010, the value of student loan debt passed credit card debt for the first time in history. There is low risk student loan debt will not be collected.
The banks that contributed to the global recession borrowed money from the Federal Reserve at interest rates like 0.0078%. Those banks then loaned the federal government the same money back at 3.5% interest. Our taxes are paying for profits and bonuses at banks.
Don't treat bankers better than students. Students should get loans at the same low rate as banks. Students will put the money to better use.