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Correct, the entire market for such loans would pretty much collapse - current yields are comparable to those of commercial real estate or high-yield corporate
by prostoalex 7y ago
Correct, the entire market for such loans would pretty much collapse - current yields are comparable to those of commercial real estate or high-yield corporate bonds, with none of the downside protections.
Unsecured personal loans (that are subject to bankruptcy) are a valid asset class, coveted by LendingClub and some banks, but they require solid credit history and carry a higher interest rate, more aggressive repayment schedule, or both.
- mgleason_3 7y agoIt’s like this entire thread is from another planet and has no knowledge of the college loan program (student loans used to be dischargeable in bankruptcy like any other loan), its origin or even presidents Obama’s attempts to overhaul it and concerns that it was actually driving up the cost of college.
- AnimalMuppet 7y agoSo, rather than criticize, you might share some of the knowledge you think we are missing...