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No. > Girouard noted the funding is different than a loan because there is no guarantee of repayment.
by simonbrown 14y ago
No.
> Girouard noted the funding is different than a loan because there is no guarantee of repayment.
- jetti 14y agoTo be fair, there is no guarantee of a typical loan either.
- chimi 14y agoMost risky loans require collateral and have legal stipulations that have pretty onerous consequences if the money isn't repaid, so there is a lot risk of default in typical loans and in that case, the bank gets something, which is thought to be of higher value than the monetary outlay.
- lsc 14y agothe typical loan given to a person of that age in America is... different from the sort of loan you or I might take out. It is guaranteed both by the government and the debtor. You can't get out of American student loans through bankruptcy. Personally, I think this is incredibly destructive; Banks will loan money as 'student loans' to people they'd never think of giving similarly sized regular loans. People that obviously have little chance of paying the loan back.