3 ms·
It's not the impact on the individual who's defaulting that is the kicker, it's more the effect on the originating bank and the parts of the financial system th
by jmcmichael 13y ago
It's not the impact on the individual who's defaulting that is the kicker, it's more the effect on the originating bank and the parts of the financial system that packaged up that loan with others of its type into financial products that are incorporated into the investment strategies of pension funds, mutual funds, municipalities, etc.
- minimax 13y agoIn the U.S. most of the outstanding student loan debt is held directly by the government. Pension funds and mutual funds don't really have exposure to student loans.