Fannie Mae , the largest provider of mortgage credit in the US , has launched a new programme allowing homeowners to refinance their home to pay off their outstanding student loan debt . But Chopra said the new guidelines from Fannie Mae are an acknowledgment of the financial realities of Americans entering typical home-buying age. This scheme will be appealing as they allow some homeowners to save significant amounts since mortgage interest rates are typically much lower than private student loans . However , people should be very cautious , warns Rohit Chopra of Consumer Federation of America , as by doing this homeowners give up some significant protections . He says only higher - income borrowers with stable jobs should consider it as , otherwise , you could be putting your home at risk .
Fannie Mae , the largest provider of mortgage credit in the US , has launched a new programme allowing homeowners to refinance their home to pay off their outstanding student loan debt . This scheme will be appealing as they allow some homeowners to save significant amounts since mortgage interest rates are typically much lower than private student loans . However , people should be very cautious , warns Rohit Chopra of Consumer Federation of America , as by doing this homeowners give up some significant protections . He says only higher - income borrowers with stable jobs should consider it as , otherwise , you could be putting your home at risk .