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> The loans -- can be variable and reset monthly, exposing borrowers to the danger of a sharp spike if the economy shifts Wait, what? Who would actually take t
by vinhboy 11y ago
> The loans -- can be variable and reset monthly, exposing borrowers to the danger of a sharp spike if the economy shifts
Wait, what? Who would actually take that kind of risk? That does not sound prudent at all.
- aikah 11y agoThat's no different from the subprime mortgages, and we all know how it ended.
- joshstrange 11y agoWith virtually none of the bankers/financiers going to jail or paying in any meaningful way for their actions?
- hueving 11y agoCute, but not the point. It ended with lots of people losing homes and a massive disruption to the global economy.
- BurritoAlPastor 11y ago'Sharp spike' is relative. Look at the numbers; Mr. Winiarz is going from 6.55% to 2.69%. If a 'sharp spike' doubled his interest, he's still paying less interest than he was on the Fed's legislatively-fixed rate. Mr. Chopra, who warned of the 'sharp spikes', works for the Consumer Financial Protection Bureau, which is a federal agency. I wouldn't go so far as to say that Mr. Chopra is spreading FUD, but from where the CFPB is standing, student loan refinancing is creating a threat to consumer financial safety, so they absolutely have an interest in discouraging it.