Borrowers who pursued the student-debt-for-mortgage-debt swap would also forgo rights to use income-driven repayment programs or pursue Public Service Loan Forgiveness for federal student loans. Consumer Federation of America , the largest backer of mortgage credit in the US , has launched a new programme allowing homeowners to refinance their mortgages to pay off their outstanding student loan debt. This option 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 Chopra of Fannie Mae , as by doing this homeowners give up some significant protections. Rohit Chopra says only higher-income borrowers with stable jobs should consider it as, otherwise, you could be putting your home at risk.
Consumer Federation of America , the largest backer of mortgage credit in the US , has launched a new programme allowing homeowners to refinance their mortgages to pay off their outstanding student loan debt. This option 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 Chopra of Fannie Mae , as by doing this homeowners give up some significant protections. Rohit Chopra says only higher-income borrowers with stable jobs should consider it as, otherwise, you could be putting your home at risk.