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My understanding is that there is a significant chunk of federal student loan debt still owned by banks, and the older debt (pre 2010) would be more likely to b
by beeboop 10y ago
My understanding is that there is a significant chunk of federal student loan debt still owned by banks, and the older debt (pre 2010) would be more likely to be in default due to permanent injury/disability.
- ikeboy 10y agoI found https://www.tuition.io/blog/2011/11/so-who-the-heck-owns-my-student-loan/ https://www.tuition.io/blog/2011/11/so-who-the-heck-owns-my-... >Guarantor. Up until 2010, many federal loans were issued via the FFEL program, where private commercial lenders (i.e., banks) issued federally-guaranteed loans. An act of Congress in 2010 eliminated the FFEL program, so now all federal loans are issued directly by the U.S. Department of Education’s Direct lending program. So no banks were at risk anyway, everything was guaranteed by the feds.