Democratic presidential candidate Sen. Bernie Sanders (I-VT) demonstrated his questionable economic knowledge on Twitter Saturday, asking why homes can be refinanced at a three percent rate whereas student loans have considerably higher rates.
You have families out there paying 6, 8, 10 percent on student debt but you can refinance your homes at 3 percent. What sense is that?
— Bernie Sanders (@SenSanders) December 26, 2015Oof, Bernie, no.
For those of you, who, presumably like Bernie Sanders, have never taken an economics course, student loans are at a higher interest rate because it is unsecured debt. A house can be repossessed, whereas a brain cannot.
@SenSanders
A bank can repossess a house. They can't repossess your brain if you quit paying student loans. Though, you make me wonder.
— Smittie (@smittie61984) December 26, 2015Um, I'm no economics guru, but one is a secured debt; the other is not. Therein lies the "sense." https://t.co/j552apfOEI
— Matt (@Voldematt) December 26, 2015It's so weird that someone whose platform is all about economics doesn't understand secured debt and collateral. https://t.co/OTQzGVgLQ7
— Michael Freeman (@michaelpfreeman) December 26, 2015While Sanders' ideas may sound appealing to some, it's scary that a man who is deliberately obscuring the truth from voters is doing so well. It makes perfect sense that different kinds of loans have different rates. There's no conspiracy.
Join the conversation as a VIP Member