Government Mortgage Lending
Why the government lend money to students at 8% and the banks at 0.50%?
The government gives money to students at prices from 7 to 9% but it gives the banks a half point, which then turn around and borrow the same money to homeowners with higher rates (my mortgage rate is 10.50%). Why can not Government a) lend directly to people on low prices rather than using banks as sharks? and b) why it does not pass the same savings for students to it for banks? I have 40K in student loans for the next 20 years at a high tempo, but if I were a bank I would pay it off in 5 (based on the total payments against it). Most of you went to school a while back, when loan rates were low. Today the average student loan gov is 8.50% (I know they were down to 3% 8 years ago but I'm talking about today) D. by overnight lending stuff is something else entirely and is only a formality for most of the time (unless a bank is losing money). The money that government gives banks then lend to its customers is what I am talking about.
true! my homeloan is 9.25% Credit 11.5% and 12.25% 5.49% car we could all save a lot there?