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Why are student loans usually guaranteed by the government? A. Banks would give students credit cards they can't afford B. Banks are required to maintain a certain reserve ratio C. Banks charge low interest
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14 votes
14 votes
Why are student loans usually guaranteed by the government?

A. Banks would give students credit cards they can't afford
B. Banks are required to maintain a certain reserve ratio
C. Banks charge low interest rates for student loans
D. Banks don't have any collateral for student loans

Edit: Its D​

User Dragut
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1 Answer

14 votes
14 votes

Answer: Banks don't have any collateral for student loans

Step-by-step explanation:

Students loans are the loans that are collected by the students so that they can be able to finance higher education. The loans can be gotten from private lenders such as bdnkd or by the government.

Student loans usually guaranteed by the government due to the fact that banks do not have any collateral for student loans but such students can be traced by the government in the case of default on the student's part.

Therefore, the correct option is D.

User Lalit Rane
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