Final answer:
William missed several payments on his student loan, causing him to go into default. His inability to repay the loan can affect his credit rating and decrease the attractiveness of the loan for investors.
Step-by-step explanation:
After completing his degree in electrical engineering, William missed several payments on his student loan, resulting in him going into default. The loan servicer is assisting William to manage his debts, but his failure to repay the loan will negatively impact his credit rating. When a borrower has been late on loan payments, there is a lower likelihood of the loan being repaid on time, which may make the loan less attractive to potential buyers or investors, particularly if interest rates have risen since the loan was issued. Institutions assume a certain level of risk for non-repayment, but excessive defaults can place significant strain on financial systems.