Sen. Al Franken: Student loan debt is damaging America’s economic growth

[forthemiddle]

16. Everyone that wants one can get a student loan

That is a blessing, and a curse. A blessing that even the poorest of the poor are eligible, but a curse is the trade off of higher interest rates.
If lenders were forced to offer prime rates, then they would understandably also make the criteria for getting the loan tougher.
It is almost the same problem as pay day loans. If the interest rate was lower, they would not give out as many loans (high default). So you almost get in a rock and a hard place. People that take out pay day loans are DESPERATE. They have no where else to turn, and will starve, or miss rent payments if they can't cash that check. But they are, statistically, also the highest defaulters, so it isn't a smart investment to loan to them. Thus making those places blessing and curses also.
We love to demonize them (rightfully so) but in reality, without them where else could uncreditworthy people get emergency relief?

I love the idea of making student loans transferable to lower rates after the payee has shown themselves responsible, and I also love the idea of making the terms more understandable to new bowerers. Keep up that good work Warren, and Franken