Parents 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 stude

Parents 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.