Born in New York City on September 3, 1967, Peter began playing piano when he was 8 but switched to guitar when he was 13, learning the instrument primarily by ear. He studied Jazz at Rutgers University with Ted Dunbar, and Kenny Barron. He completed his degree at The New School in New York City, where he met and studied with one of his mentors and influences Jim Hall. In 1990, Hall asked Bernstein to play in an invitational jazz guitar festival in which John Scofield and Pat Metheny were performing.

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