What do you think has a higher rate: May car loan or my student loan?? Yeah, my student loan. That shows the priorities of our country. To be quite frank, the federal government does not care about you getting your education, they just want you to go so they can make a lot of money and pay off their debts. (in reality, our debts) I’m going to go a little bit into how much of a scam federal student loans are and why they are the largest issue young american’s face today.

As I mentioned, my student loan is more than my car loan. And not even just by a little bit, my student loan is over 4.5X the rate of my car loan. WHAT??? At 6.8% my student loan is more expensive than if I wanted to buy a house and take out a mortgage with a 200 credit rating. And the icing on the cake is that my student loan is for longer than twice my car loan. Something just doesn’t add up. Maybe inflation is high? Maybe the risk free rate is getting higher…..


Bonds are selling at all-time lows, inflation is incredibly low, and the government risk free rate couldn’t be found with a magnifying glass. So how the hell are our loans so high??? With one word:


Yup, they set federal student loan rates and we don’t really have a choice. They have their bills to pay (vacations) and we are footing the debt. But don’t worry, here’s some alternatives because we are all about the positive:

1) Take a couple years off and save

2) Get a government job after graduation

3) Work through school and get a private loan, at least it’ll have a little lower rate,

4) Join some form of the military

5) Last but not least, move to a country where they have free education and become a citizen. (not as realistic but worth a shot)

One thought on “Student Loan Rates, How the Government is Scamming You, And How to Beat the System

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