[AmericanSamurai]

Why?

Lets look at the differences..

I default on my mortgage the bank can take the house.

I default on a student loan (I have none) the bank can take... Oh crap. they can’t take anything.

The interest rate reflects the risk taken. She defaults on the loan and there is nothing the bank can take to recover the money loaned. She even gets to keep what the bank has paid for.

Perhaps she should re-fi her loan to the government backed ones. My wife has hers through “direct loans” the rate is around 4%.

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They can garnish up to 15 percent of your paycheck if you default on a student loan.

[cableguymn]

ya.. They can.

so if your a unemployed OWS type you get 15% of nothing.

a house is a house, if they destroy it the bank knows the home owners insurance is up to date because they require escrow.

No matter how you cut it, student loans are more of a risk.