Bernienomics 101: Why student loans carry higher interest than mortgages

bloombergview.com

6 points·jseliger··7 comments

I'd accept the claim that rates are higher due to risk, given that's normally how loans work, except that student loan debt is virtually impossible to get out of, unlike any other form of debt.

As a result, its a bit disingenuous to claim "that's not how loans work outside of Sunday school" when they're already a very unique class of debt.

In the event of death of the borrower, a mortgage is still secured by the property. A student loan would be discharged.

That isn't always true[1]. The student loan is only discharged if it's a federal loan[2].

Also, neither federal nor private loans can be discharged in the event of bankruptcy, which means that student loans are effectively secured by a person's career (since loan payments can be garnished from someone's wages).

1. http://abcnews.go.com/Business/student-loans-die/story?id=19...

2. http://trends.collegeboard.org/student-aid/figures-tables/to...

Yes, correct, nothing short of death allows you escape student loan debt.

Lovely system, isn't it?

Of course, a society where tuition fee is not totally free market is automatically socialist. Like Germany.

Bernie knows this. He's a politican, not stupid. Just more evidence that he's pandering and not really running.

In honesty I'd say the same from Trump. The only candidate who is really running is Clinton.

He's pushing to lower the cost of tuition[1] rather than challenging the financial model.

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[1] https://www.gpo.gov/fdsys/pkg/BILLS-114s1373is/pdf/BILLS-114...

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