An important distinction
Mar 04, 2024
The thing that is important to understand is that while one can provide a loan, and one can legitimately receive interest on that loan, the collateral provided as a guarantee against default on it must be real, specific, and, of course, proportional to the value of the combined principle and scheduled interest of the loan.
As he mentioned earlier, student loans are wicked. This is especially galling in the US and Canada. Teenagers who are legally not trusted with a can of beer are too often crushed under a mountain of debt. I remember a literal burger flipper at my university cafeteria who was working many hours to pay off his predatory student loans.
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