I disagree but I do think lowering interest rates on higher interest loans should be considered. Some are over 8% and higher than current market.
Unsecured loans generally have higher interest rates due to being more riskier and higher default rates.
If what I have read is true, a bigger problem with student loans is the interest gets capitalized. Even though the borrow in many cases quits paying on the loan altogether, the interest continues to accumulate and the lender will capitalize the interest, make the interest part of the principle balance. Thereby having the borrower pay interest on top of interest on top of interest. Difficult to get out from under.
About 2009 Obama took student loans away from banks and let the gov’t make the loans. The gov’t was handing out tens of thousands if not hundreds of thousands of dollars in unsecured loans like candy to 18-21 years old with no concern for their ability to repay. Obama was too busy adding up all the money being made from the loans to pay for his socialist agenda.
Can the borrowers not refinance their own loans? I've refinanced mortgages in the past to a lower rate. Of course, mortgages are secured by the property, whereas student loans are secured by .... a wymen's studies degree...
Caveat emptor.