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Sallie mae provided "guaranteed" student loans, where if the borrower is bankrupt, the government takes over the loan. The government also sets the interest rat

Sallie mae provided "guaranteed" student loans, where if the borrower is bankrupt, the government takes over the loan. The government also sets the interest rates for these, as I understand it. I thought she took one of these, though maybe she took just a regular private loan? but those aren't usually referred to as student loans (and will banks actually give those when there are guaranteed ones available?)?

Shikadi 8y ago
Private loans can still be classified as student loans. Source: My enormous debt
dragonwriter 8y ago
> I thought she took one of these, though maybe she took just a regular private loan? but those aren't usually referred to as student loans (and will banks actually give those when there are guaranteed ones available?)? Federally guaranteed loans have limited interest rates and criteria for what schools they can be used at (etc.); private student loans aren't bound by either of those and have been offered largely for that reason.
pandaman 8y ago
>Sallie mae provided "guaranteed" student loans, where if the borrower is bankrupt, the government takes over the loan. Where did you get that? From what I read in Wikipedia, the only difference with a regular private loan is that they are not easily discharged through bankruptcy thus the interest rates are quite low compared to a regular unsecured loan for a person with no credit history and no income. https://en.wikipedia.org/wiki/Private_student_loan_(United_States) https://en.wikipedia.org/wiki/Private_student_loan_(United_S...