Does Bernie Sanders Understand the Student Loan Program

Bernie Sanders, stated the other day

  • “In my view, if you can refinance your home today for 2, 3 percent, why the hell are we paying 8 or 10 percent interest rates on student debt?”

First of all mortgage rates have never reached 2%.

Clearly, Mr. Sanders doesn’t understand the differences between non colateralized student loan debt and an resalable physical asset.

Additionally, with income based repayment a student loan borrower can base their repayment directly on their income, try that with your home mortgage.

I am discouraged by Mr. Sanders comparison of two different lending instruments and his lack of understanding of basics of lending.

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About defaultprevention

Default Prevention Specialist since 1998.
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