The banking industry’s main lobbying group is pressing for the federal government to instate caps on how much individual graduate students and parents of undergraduates can borrow from the government to cover tuition.
Robert Spencer/Stringer/Getty Images The $ 1.3 trillion student-loan market is a “bubble,” Goldman Sachs strategists said in a recent note. The banks believes the market for asset-backed securities refinanced by private lenders like SoFi “may offer relative value” compared to public student-loan securities. Asset-backed securities bundle pools of loans with similar risks that investors can profit […]
Drew Angerer/Getty Images Borrowers who default on their student loans are pursued aggressively by the Department of Education and private debt collectors, facing garnished wages, withheld IRS tax returns, and decreased Social Security payments, Reuters reported. “We treat struggling student-loan borrowers the same as deadbeat parents and tax cheats,” Seth Frotman, a senior member of the […]