Before diving into whystudent loansare considered unsecured, let’s first understand what exactly unsecured loans are. Unsecured loans are a type of loan that does not require any collateral as security. In other words, they are not backed by any tangible asset such as a house, car, or prop...
Why are student loans harder to discharge than other debts? Congress has set a high bar for discharging student loan debt in bankruptcy. In the 1970s, lawmakers — responding to concerns by policy makers and pundits that students would rack up debt and then try to ditch it in court —...
Once the grace period ends, borrowers are typically required to make monthly repayments towards the loan, which includes both principal and interest. It is important to note that student loans often have longer repayment terms compared to other types of loans, allowing borrowers more time to pay...
According to anew reportby the progressive think tank Demos, “student debt is particularly damaging for individuals who struggle to repay their loans. Delinquent borrowers are saddled with fees, penalties and rapidly accumulating interest; borrowers who default on their loans face ruined credit and a...
Student loans are often cited as an insurmountable barrier to homeownership for young home buyers. It is true that student loan debt levels are higher today than a generation ago, but is it preventing potential home buyers from saving for a down payment? The recently released2019 Survey of Cons...
Why do most student loans involve a co-signer? Discuss the statement: "Since I have high credit card limits, I have lots of money." Are credit cards money? Why or why not? (a) What information must borrowers supply to lenders in the loan application...
Here are three solid reasons you might not want to pay off your mortgage or student loans early. Image source: Getty Images. 1. They're not your highest-interest-rate debts When you make a payment against debt, you're essentially getting a guaranteed return on that money of wha...
one. Americans have access to several grant programs, such asPell grants,available to low-income families. Scholarships are available for many different kinds of individuals, including high-achievers and hard workers. And yes, student loans are also in place to help people find the money for ...
The Obama administration made it pretty clear yesterday that they do indeed intend to take over the student loan market. That’s not a big surprise but the language they used to make their case was revealing. Robert Shireman, a deputy undersecretary of t
On the other hand, minimizing repayments (to interest only, for instance) can free up income to invest elsewhere or put into retirement savings while you’re young when your nest egg gets the maximum benefit fromcompounding interest. Some private and federal student loans are even eligible for...