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Banks don't have any collateral for student loans.

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Q: Why are student loans usually guaranteed by the government?
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Related questions

Can student loans be garnished from tax return?

Government Guaranteed or isnured ones, yes.


In what ways are private student loans different from government loans.?

Private student loans usually have higher interest rates and have to be paid in a specific time period. Government loans are more flexible.


Can taxes be taken for student loans?

Federally guaranteed or insured loans, yes.


Where do I go to apply for government student loans?

Student loans are guaranteed by the federal government for students who have "need." Need is determined by FAFSA, Free Application for Federal Student Aid, which you can complete at www.fafsa.ed.gov A subsidized student loan is one for which the interest is paid for by the federal government while the student is in school and through the grace period. Read about federally subsidized student loans here: https://studentloans.gov/myDirectLoan/index.action


Are they a statute of limitation on student loans in South Carolina?

Student loans are a Federal guaranteed loan. There is no statute of limitations for them.


Privately owned comapnies generally offer better stufdent loans than the federal government?

In the USA, all Federally Guaranteed student loans have the same interest rate and same benefits. It does not matter if you get the loans from a private bank or directly from the government. Private student loans differ in interest rate and benefits for each bank. Federal Student loans have lower interest rates and better benefits than private student loans.


Are uncns loans federal student loans?

Yes. UNCNS stands for "Unsubsidized Consolidated." Since private or state loans not guaranteed by the federal government are ineligible to be consolidated, only federal loans can be labeled UNCNS.


Are Veteran Loans guaranteed by the federal government?

Yes, VA loans are guaranteed by the federal government. More specifically, they're guaranteed by the U.S. Department of Veterans Affairs.


Is there a statute of limitation on Student loans?

No. You have to pay them back.Answer2It's a statute not a statue. A statute is a law, a statue is a piece of sculpture.


Can your federal refund be taken for student loans?

For delinquent gov't insured or guaranteed loans.


Can you get your student loans paid for by joining the peace corp?

if you paid off a Defaulted student loan and don't have any other defaulted student loans, then you are eligible to get new Federally Guaranteed student loans


Can you tell me about private education loans vs. government education loans?

HUGE difference. Federally Guaranteed student loans have very low interest rates and many benefits attached. Private student loans have much higher interest rates and no benefits.