A refi is good when you have variable rate debt and you're exposed to a high rate environment. See: mortgages BUT: majority of student debt is fixed rate, and there are already legal caps on student loan APRs. Bottom line: student loan refi is a solution looking for a problemhttps://twitter.com/amyklobuchar/status/1120465113847402497 …
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You mean like getting a refi into a longer-tenor student loan to keep the tax deductibility for longer? That is definitely an interesting idea, though worth mentioning that the student loan interest deduction is capped at $2500/year. But it could still be a good reason to refi!
That said, a strategic refi for tax purposes would be a limited use case. At end of the day, student loans have low cost of credit which intrinsically limits the usefulness of a refi. IMO the bigger issue is that student loan underwriting standards are basically nonexistent.
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Precisely; when the gov’t is the lender, it changes the policy rationale and, IMO, refi is a way to sell Warren’s concept to conservatives/Rs that are against a wealth tax; but I think the argument can be made compellingly that a refi isn’t unreasonable for some income range
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