Student Loan Interest as Bad Social Policy

So outstanding student loans in the US are about $1.5 trillion. Most are at 6-8% interest, and are federally guaranteed. Meaning whoever holds the loan cannot lose money (if the loan isn’t paid by the borrower, the Federal government makes the lender whole). Since offsetting losses is the whole purpose of interest, this is pretty much a $90 billion per year federal give-away to big banks. They get to collect the...