The congress is considering to tie student loans to a 10yr treas rate..Is this like a black swan for cheap interest rates ( meaning when the gov gets involved it goes south).. will 10 yr trea be 5 % in 2016.. don
this is a copy paste from a AP article less then a hr old.. don
Basing student loans on 10-year Treasury notes' rates would, at least for now, offer a deal to some students.
For instance, students taking Stafford loans would pay 2.5 percent above the Treasury 10-year rate. That would translate to 4.3 percent for undergraduate loans — an increase from the 3.4 percent now paid by students who receive a subsidized Stafford loan and a decrease from the 6.8 percent for other students who do not receive a subsidized Stafford loan.
For other loans typically taken by parents or graduate students — called PLUS loans — the rates would be the 4.5 percentage points higher than the rate on the 10-year Treasury note. That would translate to 6.3 percent interest for PLUS loans taken this week — a decrease from the 7.9 percent fixed rate currently offered.
from what i've been told 10 yr treasury is how mortgage rates are based...it 10 yr goes up, so do mortgage rates...which means price decline for housing..... Fed is trying to hold rates artificially low to stimulate housing by buying bonds.... maybe fed will buy college loans also.....
so higher education will receive more welfare indirectly by having customers (students) taking out loans to go to school...... it is all so incestual...... and it eventually will all come crashing down......