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I am seriously interested in understanding how an individual would go about shorting college loan securities. I have no doubt in my mind that this the next big

• nonchalance 13y ago
  Unless you have the money to cut a deal with a major investment bank (like how paulson worked with GS to short MBS), you could just try to amass as much student loan debt as possible and wait for the government to force lenders to take a haircut. That way, you "win" insofar as the cash you have exceeds how much you have to pay back. But TBH it's a really really bad idea because if there is a 100% federal backstop you will end up losing. You could also short servicers and lenders like Apollo Group (NASDAQ:APOL) and Nelnet (NYSE:NNI). If you asked me for a compelling short in the space, I would say DeVry (NYSE:DV), but do your own due diligence before entering a trade
• stygiansonic 13y ago
  Well you could always take up a short position in Sallie Mae (SLM), however such an undertaking would be fraught with risk. They are a GSE, though both Freddie and Fannie were as well. And don't forget the timeless Kenyes quote: "Markets can remain irrational longer than you can remain solvent." (paraphrased)