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Yes, Bernie.


Posted: Jan 2, 2016

Sanders doesn't think it makes sense for "students to pay a higher interest rate for college loans than people pay on mortgages and car loans."

First, Mr. Sanders, student loan rates are running around 5%, so they're hardly exorbitant. 

Second, Mr. Sanders, home loans and car loans are secured loans.  The lender can repossess the home or the car if payment isn't made.   Student loans typically are unsecured by any collateral.  Please note that the other major form of unsecured debt, credit card debt, typically carries a much higher rate of interest than student loans do, and I don't hear you crying that student loans are NOT charged at credit card rates?

Third, there is no "special" logical relationship between home rates and auto rates, between auto rates and credit card rates, between credit card rates and the coupon on bonds, etc., except in the very broad sense that different interest rates roughly tend to move up or down together in conjunction with movements in the prime rate, economic conditions, etc.  In other words, there's no logic that says "Because rates for X are such and so, rates for Y should be this-and-that".

Now you know why you were handed your hat when you said this, Bernie.  Of course, it's nothing new for you, is it?

 

;

Student loans are insured by the government - they are not unsecured

[ In Reply To ..]

BTW, I included a link to your source...just in case anyone would like to read the "original."


http://thefederalist.com/2015/10/21/no-bernie-sanders-student-loan-rates-should-be-higher/

I'm trying to see how you fail to see the oxymoron. - The govt guarantee only shifts the cost to us.

[ In Reply To ..]
Unbelievable to me that anyone would equate secured loans with government guarantees.

You DO know who the "government" is, don't you??!!

Oh, yes - and by the way, that wasn't my source. Nice try, but no cigar and/or kewpie doll for you. Next shooter, please!

The student loan program has always - been secured by the government

[ In Reply To ..]
Your point was disagreement with Sanders over interest rates and that interest rates for student loans should be high because the banks had something to lose. The government is not garnering the interest--just Corporate America BANKS.

Oh, yes, wave that flag...WE are by all means the government. If that is the case, what in the world happened during those Republican war mongering administrations. Is that what "we" wanted. Not me.

So your source was?
Do you actually read my posts before replying? - Take another crack at it.
[ In Reply To ..]
...and kindly show me where I said student loan rates should be high.

All done? Okay, I'll look for your apology.
Butting in here. The point is that the student loan companies have...sm - VTMT
[ In Reply To ..]
no right to charge high interest rates based on the unsecured loan excuse. If the loan recipient defaults, the federal government pays the loan and then goes after the money via debt collection, even deducting from Social Security payments if necessary.
Oh, you are welcome to join--sometimes - I just don't have the patience
[ In Reply To ..]
to explain simplistically enough.
Ah, but here's your problem. They're not charging - "high interest rates" at all.
[ In Reply To ..]
Shopping around, rates are as low as 1.9% and the highest I saw was 6.74%. There are a lot of other issues playing into this as well:

1. The government is NOT going after student loan defaulters.

2. Many student loans are NOT government guaranteed.

3. Many students are using loan proceeds for frivolous expenditures, purchasing the most expensive computers, etc.

Try again.
Personal experience? - nm
[ In Reply To ..]
.
I guess snark substitutes for discussion in your - world.
[ In Reply To ..]
...but not mine. Bye.
Many student loans are NOT secured by the government. - These are such easy things to research...
[ In Reply To ..]
I suppose it's too much to ask people to know what they're talking about before they post.
So, have we gone full circle yet?-Bernie Sanders - says it costs too much
[ In Reply To ..]
to go to college via the current system of student loans, guaranteed government loans and open market rates both. He believes that we can grow our economy by educating our own workforce. He believes that we should not allow the top wealth in this country to own the businesses and the best educations (very possibly for mediocre recipients). He wants to assure that all Americans have an equal opportunity to contribute to the economy and growth of the United States by making public college education available to everyone. Private schools can continue on anyway they choose. They are still private. I don't believe he has requested that student loans be prohibited. I would enjoy some reputable feedback on that issue, if anyone has any.
History repeats itself - Opinion
[ In Reply To ..]
Do some research on Huey Long's share the wealth program in the 1930s and make your own comparisons to Bernie Sanders.
Maybe, just possibly, the economy of the - U.S. is a bit different than in the 1930s?
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xx
Student loans - Opinion
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Interest rates for auto loans and home loans are based on something that student loans are not, a person's credit score, anyone can get a student loan without having to prove credit worthiness. Another difference is that people are expected to re-pay their mortgages and car loans or suffer the consequences. Student loan program secured by the government? Hello....that means the taxpayers.
So, take the check out of the hands of the - population-make it free
[ In Reply To ..]
Destroy the whole money-making proposition of student loans. No more interest and servicing of loans. No money for FAFSA to qualify. Streamline the money. No loans going for "other" services and goods than as intended. Fund public college education. If you want to go to college, sign up, go. Money never passes through hands of the student.

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