Respuesta :
Answer:
c
Explanation:
Lenders don't have any collateral to seize if the loan doesn't get
paid back
Student loans considered unsecured because Lenders don't have any collateral to seize if the loan doesn't get paid back
The larger a loan is, the more risk a lender takes on by offering it. That’s why some types of loans are harder to qualify for than others.
But strict eligibility requirements aren’t the only measure lenders use to protect themselves.
What is collateral?
"The term collateral refers to an asset that a lender accepts as security for a loan. Collateral may take the form of real estate or other kinds of assets, depending on the purpose of the loan.
The collateral acts as a form of protection for the lender. That is, if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses."
Who are Lenders?
A lender is an individual, a group (it can be both public or private), or a financial institution that makes funds available to a person or business with the expectation that the funds will be repaid. Repayment will include the payment of any interest or fees.
"Lenders provide funds for a variety of reasons, such as a home mortgage, an automobile loan, or a small business loan.
The terms of the loan specify how it must be satisfied, e.g., the repayment period and the consequences of missing payments and default. A lender may go to a collection agency to recover any funds that are past due."
Hence, option C is the correct answer
To learn more about collateral here
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