Buy Student Loans Official

When people talk about "buying student loans," they usually mean one of two very different things: taking out a loan to pay for school or buying existing debt as an investment. This post explores the side of the market where student debt is treated as a financial asset. What Does it Mean to "Buy" Student Loan Debt?

: These are the standard way for sophisticated investors to gain exposure. They often include private student loans or older FFELP loans that are 97–98% guaranteed by the government. buy student loans

Individual investors don't typically buy a single student loan from a bank. Instead, student loans are "securitized"—bundled together into large packages known as . When people talk about "buying student loans," they

: Banks like Citizens Bank or PNC Bank issue loans to students. : These are the standard way for sophisticated

: If many borrowers stop paying at once, the value of the security drops.

: Unlike other debt, student loans are notoriously hard to wipe away in bankruptcy, making them a "stickier" asset for the owner. The Cons :