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College-loan rates

Published: Thursday, July 25, 2013 5:30 a.m. CDT

To the Editor:

Conservative politicians say college-loan interest rates should be at market rates.

Banks are lending with no fear of nonpayments. You and I are guaranteeing the loans.

Banks borrow money at 1 percent to 1.5 percent (certificate of deposit and savings rates). Student loans should be at 3 percent, giving banks a 100 percent profit. All guaranteed student loans should be set at 1.5 percent – what banks pay for money.

True market rates.

Peder Gronset

East Dundee

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