There’s also no collateral.
by EricCartman (2024-04-22 13:40:42)

In reply to: The biggest problem with student loans is that there is  posted by Raoul

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There’s nothing physical to repossess when the borrower defaults. It’s an entirely unsecured loan, which is why rates are high and you cannot discharge the loans in BK.



also, unlike other debts
by jt  (2024-04-22 15:25:45)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Reply to Post

when the debtor goes to pay back the loan, he/she has already received the benefit of having the loan.

People don't like to pay for something that they aren't currently benefiting from.