Elijah should consider taking an unsecured loan since there is no collateral. This option is suitable because the expense for studying abroad is an educational cost and does not have a physical asset that can be used as collateral, such as a secured loan would require. Additionally, unsecured loans generally have flexible repayment options, which could be beneficial for Elijah, especially since his parents are willing to help him pay it back later. However, he should ensure that the terms of the loan are reasonable and that he is aware of the interest rates before proceeding.
Elijah has an opportunity to study abroad, but this will cost $5000 more than his regular college tuition. He wants to have a career in international finance when he graduates, so this opportunity will be particularly valuable for his career. His parents encourage him to go and tell him that they will help pay back the loan next year when they are done paying his brother’s college tuition. What kind of loan should Elijah get?
Responses
a loan with a very high APR
a government bond or treasury bill
a secured loan since the trip is collateral
an unsecured loan since there is no collateral
1 answer
1 answer