[captaincrisp]

Some of the interest rates I've seen on federal student loans - 7+% - seem exorbitant in general but particularly because the lender takes no risk.

7% interest on a loan in a year with 3% inflation (the real cost of having money that year) that is guaranteed to be repaid seems like evidence of corruption to me. But maybe I think too simplistically.

[imtringued]

8% is the usual rate for a "qualifiziertes Nachrangdarlehen" in Germany which is an equity based loan that is paid out only when the company is profitable. So you are right. The interest rate is too high.

[loeg]

It's not true to say the Federal government does not take on risk loaning to students. Students are frequently unable to pay. 7% probably does not cover costs.