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>"1. If it becomes possible to get out of student debt through bankruptcy, then there must be additional collateral posted by the debtors." Could you elaborate
by bogomipz 7y ago
>"1. If it becomes possible to get out of student debt through bankruptcy, then there must be additional collateral posted by the debtors."
Could you elaborate on this? Would that collateral just be a higher cash to loan ratio on the part of students or are you referring to something else?
- clarkmoody 7y agoParents could put up a portion as cash. They could also stake the house or car on it -- some tangible property to repossess, just like other loans. Since students basically have zero assets, another commenter pointed out, the more likely scenario is simply higher interest rates due to the increased risk to the lender.