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Student loans are secure. They cannot be discharged through bankruptcy.
by user5994461 8y ago
Student loans are secure. They cannot be discharged through bankruptcy.
- gnicholas 8y agoThat’s not what “secured” refers to. It means that if a loan is in default, the lender can seize an asset, like a house or some receivables. The fact that student loans can’t be discharged in bankruptcy makes them less risky, but not nearly as safe as a secured loan where there is an asset backing it up.
- user5994461 8y agoIncorrect. Bankruptcy is more secure. When the student can't pay, the abusive interest rate accrues fast enough that it becomes a perpetual loan. It's a guaranteed lifetime earning for the bank. It's also a misnomer to call that defaulting. The principal can be covered many times over by the interest. It's very profitable.
- deleted 8y ago[deleted]