<p>You guys are making this too political. Interest rates for mortgages should be lower than student loans because 1) mortgages have tangible assets backing the loan and 2) lenders can discriminate based on ability to repay and credit.</p>
<p>If you really want to make student loans fair, allow lenders to discriminate (rates and amount of loans allowed) based on major. Chemical Engineers who start in the $70,000 / year with 80% employment are a safer bet for a lender than a Puppetry Arts major who might struggle to make $30,000 / year and is very likely to be unemployed. Then, in later years, lets the banks discriminate based on GPA. The 4.0 students are more likely to graduate with high paying jobs than the 2.0 students. Also, adjust for school based on the school’s historic placement (Harvard students get more loans at lower rates that University of Phoenix students).</p>