6 ms·
I'd accept the claim that rates are higher due to risk, given that's normally how loans work, except that student loan debt is virtually impossible to get out o
by zzalpha 11y ago
I'd accept the claim that rates are higher due to risk, given that's normally how loans work, except that student loan debt is virtually impossible to get out of, unlike any other form of debt.
As a result, its a bit disingenuous to claim "that's not how loans work outside of Sunday school" when they're already a very unique class of debt.
- toast0 11y agoIn the event of death of the borrower, a mortgage is still secured by the property. A student loan would be discharged.
- smt88 11y agoThat isn't always true[1]. The student loan is only discharged if it's a federal loan[2]. Also, neither federal nor private loans can be discharged in the event of bankruptcy, which means that student loans are effectively secured by a person's career (since loan payments can be garnished from someone's wages). 1. http://abcnews.go.com/Business/student-loans-die/story?id=19460467 http://abcnews.go.com/Business/student-loans-die/story?id=19... 2. http://trends.collegeboard.org/student-aid/figures-tables/total-federal-and-nonfederal-loans-over-time http://trends.collegeboard.org/student-aid/figures-tables/to...
- zzalpha 11y agoYes, correct, nothing short of death allows you escape student loan debt. Lovely system, isn't it?