3 ms·
Most student loan debt is owned by the government so it wouldn't collapse quite like how mortgages sank the housing market. If the pipeline for easy loans drie
by sct202 8y ago
Most student loan debt is owned by the government so it wouldn't collapse quite like how mortgages sank the housing market. If the pipeline for easy loans dries up a lot of colleges and their dependent industries (publishing, construction, education focused IT providers) will probably take a big haircut or close.
- Deinos 8y agoTrue, but there has been a large drive toward refinancing student loan debt, which moves that risk into the private sector. I would be curious to see what percentage of government financed loans have been converted to private debt.
- sct202 8y agoOh yeah I've seen a lot of ads for SoFi and Laurel--also weirdly extravagant SoFi 'member' events. It seems like SoFi alone is probably fairly large. They've been reporting billions of dollars in consumer and student loans converted in a Q1 2018. Also they've been issuing asset backed securities linked to their loans.