Re:The Student Debt Problem Is Worse Than We Imagined
by mrep on Monday August 27, 2018 @12:09AM
(#17849379)
The main difference is a bank can repossess your house/car/possessions for normal loans thus making back some of the money they leant you (and you losing all of the stuff you bought with that debt). They cannot repossess any bit of the money spent on your education. This is why the federal government steps in because they legally can repossess some of your education by extracting it out of your future earnings.
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Re:The Student Debt Problem Is Worse Than We Imagined
by chriswarbo on Monday August 27, 2018 @06:06AM
(#17850489)
You're describing the difference between unsecured and secured loans. The parent explicitly stated that they were talking about unsecured loans (where there's no tangible thing to repossess).
Re:The Student Debt Problem Is Worse Than We Imagined
by mrep on Monday August 27, 2018 @10:16AM
(#17851595)
Oh wow, reading more into it, some credit cards are actually unsecured (but some aren't [0]). However, credit card companies can still sue you even if it is an unsecured loan and then repossess some of your stuff depending on the state [1].
[0]: https://www.nerdwallet.com/blog/credit-cards/credit-card-bil...