What is the logic behind the government charging interest for student loans? I assume the government is involved with these sorts of loans in order to protect students. If this is the case why is any interest charged or are there other factors involved?

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Posted by Ian Phelan (MONEY FORUMS: 1, Answers: 0)
Asked on November 9, 2015 2:21 pm
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Ian, there is no such thing as "free" money regardless of the source. Certain Federal loans for low income students actually do not accrue interest until the student finishes (or stops going) to school. The government pays the interest on these loans for them. If you consider that the government hands money to 18-year olds with no collateral, they must be compensated accordingly for the risk associated with those loans.
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Posted by Beth Tallman (MONEY FORUMS: 1, Answers: 61)
Answered: November 12, 2015 5:27 pm