Loans made from private banks for which the government promises repayment in the event of default are referred to as:

Question

Quizplus · Accepted Answer

Guaranteed student loans are loans made by private banks but are backed by the government in case the borrower defaults. The government guarantees repayment of the loan to the lender, hence reducing the risk and allowing lenders to offer lower interest rates to borrowers.

Loans Made from Private Banks for Which the Government Promises