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.