Interest rates on student loans have been at 6.8% to 7.9% for quite some time. These rates are onerous given the low interest environment (2.9% for home equity loans, 3.5% for mortgages, 0% for savings accounts).
The result is that the student loans used to finance education "balloon" into a high balance, making it difficult for college graduates to repay them and live without high levels of debt.
If the federal government wants to encourage an educated workforce that meets the skills requirements of employers, they should not earn a significant profit margin on student loans.
The federal government should charge a reasonable rate on student loans, such as 3-5%, and include variable rate and fixed rate options. This would make a college education more affordable