Help me find the error in this Socratic logic:
A: an "interest rate" = risk free component + risk component*
B: student loans are risk free**
C: therefore, student loan interest rates should be 0%***
*"risk free" = something like us treasury notes, currently at about 0.4% (that is, under 1%)
** i) only by death or by full payment can a student loan be erased. ii) student loans are the only type of loan that cannot be absolved through bankruptcy. iii) student loan lenders have the power to garnish wages through collaboration with the us treasury department
***or more accurately, 0% above the risk free rate, which is about 0.4% right now.