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"Most lenders are huge institutions, such as international banks or the government. After a loan is originated, however, it represents an asset that can be boug
by jollyllama 4y ago
"Most lenders are huge institutions, such as international banks or the government. After a loan is originated, however, it represents an asset that can be bought and sold on the market."
Source: https://www.investopedia.com/articles/personal-finance/081216/who-actually-owns-student-loan-debt.asp https://www.investopedia.com/articles/personal-finance/08121...
- lapcat 4y agoLook at the source of investopedia's stats: "The outstanding federal loan balance is $1.620 trillion and accounts for 92.7% of all student loan debt." https://educationdata.org/student-loan-debt-statistics https://educationdata.org/student-loan-debt-statistics So yes, banks do hold some student loan debt, but most of it is held by the federal government.
- Dma54rhs 4y agoI believe your federal good government has fully guaranteed these loans so it doesn't really matter. The lenders still get paid as the write off would mean government taking the hit.