
Bernienomics 101: Why student loans carry higher interest than mortgages - jseliger
http://www.bloombergview.com/articles/2015-12-28/bernienomics-101
======
zzalpha
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.

~~~
toast0
In the event of death of the borrower, a mortgage is still secured by the
property. A student loan would be discharged.

~~~
smt88
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...](http://abcnews.go.com/Business/student-loans-
die/story?id=19460467)

2\. [http://trends.collegeboard.org/student-aid/figures-
tables/to...](http://trends.collegeboard.org/student-aid/figures-tables/total-
federal-and-nonfederal-loans-over-time)

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

------
alttab
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.

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

___

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

