Question

you have been asked to write an essay for or against subprime auto loans. which of the following contains the best thesis statement and supporting ideas for this essay? thesis statement: subprime loans are given to people with bad credit histories or low income, and usually have longer terms and higher interest rates than standard loans. • the interest rate on subprime auto loans can be as much as 20%. • \subprime\ refers to loans given to those with credit ratings below 600. \deep subprime\ borrowers have scores under 300. • in 2017, americans held approximately $300 billion in outstanding subprime auto loans. thesis statement: subprime auto loans should be banned before they trigger a financial crisis. • remember the financial crash of 2008? it was partially triggered by the collapse of subprime home loans. • it took the country years to recover from the housing crisis. • the country cant afford another subprime loan crisis. thesis statement: subprime auto loans are responding to a need and there is nothing wrong with that. • people wouldnt take out the loans if they didnt need the cars. denying low - income people a way to get to work wont help them out of poverty. • the majority of car loans are not subprime loans. it is unfortunate that some people cant handle their finances but the defaults will not harm the overall economy. • \let the buyer beware\ thesis statement: subprime auto loans trap low - income people in a cycle of debt and should be more heavily regulated. • subprime auto loans are marketed to people who have few resources and desperately need a car to get to work. they have interest rates several times higher than prime loans because borrowers have no choice. • high interest rates mean borrowers pay far more than the vehicle is worth, and long terms mean they often owe for longer than the car lasts. • when a borrower defaults, lenders repossess the car and sue or garnish wages for the balance of the loan. then borrowers have to take out another subprime loan, because of their need for transportation, and the cycle repeats.

Explanation:

A thesis statement should clearly present a stance (for or against subprime auto loans) and the supporting ideas should directly relate to and strengthen that stance. The first option just provides facts about subprime loans (interest rate, credit ratings, amount outstanding) without a clear for/against stance. The second option has a stance (ban subprime auto loans) but the supporting ideas are more about subprime home loans and a general statement about not affording another crisis - not specifically tied to subprime auto loans. The third option has a stance (subprime auto loans are okay) but the "Let the Buyer Beware" is a rather weak and not well - developed support. The fourth option has a clear stance (subprime auto loans trap low - income people and need more regulation) and the supporting ideas (targeting low - resource people, high interest rates leading to debt cycle) directly support the thesis.

Answer:

The fourth option (Thesis statement: Subprime auto loans trap low - income people in a cycle of debt and should be more heavily regulated. Supporting ideas: Subprime auto loans are marketed to people who have few resources and desperately need a car to get to work. They have interest rates several times higher than prime loans because borrowers have no choice. High interest rates mean borrowers pay far more than the vehicle is worth, and long terms mean they often owe for longer than the car lasts. When a borrower defaults, lenders repossess the car and sue or garnish wages for the balance of the loan. Then borrowers have to take out another subprime loan, because of their need for transportation, and the cycle repeats) contains the best thesis statement and supporting ideas.