A student loan is classified as an unsecured loan because it does not require collateral. Unlike secured loans, which are backed by an asset (such as a house or car) that the lender can claim if the borrower defaults, unsecured loans are based solely on the borrower's creditworthiness and ability to repay. This means that lenders assess the borrower's financial history and credit score to determine eligibility. Student loans are specifically designed to assist students in financing their education, often featuring lower interest rates compared to other unsecured loans, making them more accessible for students.