My note was short. I pointed her to page 2 of the SEC letter (the 40% deal).
I stated the obvious. To break even, the borrower has to make 31 loan payments. Most successfully make the first 12, so you can't use the first year as an indicator.
I then gave her my experience (simplistic as it is):
6 loans.
1 defaulted after 8 payments.
2 stopped paying at 18 months.
2 have struggled, both now make manual payments. One is current the other is in collections, but *is* making payments.
1 has made all payments on time, but still has 19 to go.
Even if the last three pay off all they owe, I will lose 5% of my money, not make 10-15%. I now understand why credit cards charge 15-30%!
I decided to leave off the Will Rogers quote....