Looking for A Student Loan?

by James & Miel on August 11, 2008 · 0 comments

Well, according to the Wall Street Journal, you may have some problems.

Why?

In a word: money.

Lenders take the student loans and turn them into bonds. But since most private loans are made to low income borrowers at for profit educational institutions, investors don’t want to buy loans backed by this population. They reason – and rightly – that poor people with bad credit are less likely to make payments, which means the value of bonds based on these are questionable. Hence, the big lenders don’t want to make the loans.

Check the story here.

Best,

James

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