How did high interest rates affect savings and loans (s& ls) in the 1980s? s& ls lost money. they had to pay high interest on deposits, but took in less money from low interest loans. s& ls lost money. their earnings were not enough to pay off the loans they had taken out from the federal reserve. s& ls made money. high interest rates attracted more depositors, and s& ls used their deposits to make more loans. s& ls made money. they earned high interest on loans they made throughout the 1980s.