Interest rates on federal student loans are unreasonable and place an undue burden on those who utilize the loan programs. With fixed interest rates (some loan rates at nearly 9 percent), it takes years to pay off the interest (particularly on unsubsidized loans) before principal is even touched. Additionally, if any federal student loan is placed in forbearance for any period of time due to hardship, interest continues to accrue at these unreasonable rates. Student loan interest rates should be comparable to the current savings rate. There should at least be some compromise on this issue - perhaps an incentive program that rewards borrowers in the form of an interest rate reduction once they have successfully completed a degree program.
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