system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: why do student loans have higher interest than car/house loans?
gpt
Because the risk to the lender is higher. With a car or house loan, the lender can repossess the physical property in question, then sell it to recoup losses. Education can't be repossessed, and students are mostly young and poor, so the rate has to be higher overall to allow banks to invest in them.