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Kiva argues, however, that any confusion disappears come repayment time.
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Also, the loans come with repayment options and loan forgiveness programs that mortgages do not have.
Default is a persistent concern for EMD investors and it pays to separate the good and bad actors when it comes to repayment of sovereign debt.
And they're on board with the idea of giving taxpayers the most senior position when it comes to repayment of the loans, though Ford has a slight complication with this because the company has already mortgaged all of its assets.
These have no government guarantees and come with fewer repayment options.
His government started the channel with a $130m loan, which will soon come due for repayment (given its current run of luck, giving the money back should be a cinch).
Meanwhile, the loan will come with a repayment plan that will give you a mandatory path to getting rid of the debt within three, four, or five years as opposed to 30.
And furthermore, says Lewis, fee levels will be pretty much irrelevant when it comes to repayments: "There are a couple of things people don't get.
More than 60 percent of the money will be borrowed by the government, and the rest is supposed to come from bank repayments of capital the state pushed on them a year ago.
If future graduate repayments come in lower than expected, then a future government will have to accept higher-than-expected levels of public sector debt, or offset this by increasing taxes or cutting spending either on higher education or elsewhere".
The statement notes that the repayments come from the governor, his family or his business.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com