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>But there are also creditors as well. Think of grandparents who have a 401k for retirement. Through the interconnectedness of the financial system, a component
by jsprogrammer 11y ago
>But there are also creditors as well. Think of grandparents who have a 401k for retirement. Through the interconnectedness of the financial system, a component of their retirement income will depend on payback of those "bad" college loans.
Do most 401Ks really invest in student debt?
- forgetsusername 11y ago>Do most 401Ks really invest in student debt? It's trillions of dollars, and every penny of it is held as an asset on someone's balance sheet. Do you think it's confined to "greedy bankers"?
- ArkyBeagle 11y agoThey might; I doubt they do directly. The emphasis is on the "interconnectedness". After five or so hops ( A invests in B ->C->D->E ), you don't much know any more.
- nissimk 11y agoI don't know about "most", but it is probably safe to say "many." Sallie Mae retains ownership of 25% of all outstanding student loan debt. If the debt was forgiven, I think it is safe to presume their equity stock price would go to 0. Look here for the largest holders of that stock: https://finance.yahoo.com/q/mh?s=SLM+Major+Holders https://finance.yahoo.com/q/mh?s=SLM+Major+Holders Much of the other 75% is I'm sure also distributed into many other common mutual funds that are used in people's 401k plans.