student loans

[igor555]

not many are talking about this asset class. these loans are not collateralized which could be worse than the mortgage crisis for lenders and investors. avg debt is about 30k and avg starting salary is 44k and lots of unemployed graduates still. private loans make up about 8% of the market meaning no govt guarantee for repayment.

so 2 part question…

1)do you think this will eventually blow up?

2)if so, how can you make money?

-some short targets would be apollo group and navient

[Sweep_the_Leg]

@igor555

not many are talking about this asset class. these loans are not collateralized which could be worse than the mortgage crisis for lenders and investors. avg debt is about 30k and avg starting salary is 44k and lots of unemployed graduates still. private loans make up about 8% of the market meaning no govt guarantee for repayment.

so 2 part question…

1)do you think this will eventually blow up?

2)if so, how can you make money?

-some short targets would be apollo group and navient

I’m only about three four years ahead of you.

http://www.analystforum.com/comment/91353554#comment-91353554

[danv0330]

economy will have a growth renaissance under the Trump administration ushering a period of prosperity the world has never seen… This could be one of the best credit opportunities of our lifetime.

[el_macca17]

@Sweep_the_Leg

@igor555

not many are talking about this asset class. these loans are not collateralized which could be worse than the mortgage crisis for lenders and investors. avg debt is about 30k and avg starting salary is 44k and lots of unemployed graduates still. private loans make up about 8% of the market meaning no govt guarantee for repayment.

so 2 part question…

1)do you think this will eventually blow up?

2)if so, how can you make money?

-some short targets would be apollo group and navient

I’m only about three four years ahead of you.

http://www.analystforum.com/comment/91353554#comment-91353554

hows that trade working out for you?

[igor555]

@mk17

@Sweep_the_Leg

@igor555

not many are talking about this asset class. these loans are not collateralized which could be worse than the mortgage crisis for lenders and investors. avg debt is about 30k and avg starting salary is 44k and lots of unemployed graduates still. private loans make up about 8% of the market meaning no govt guarantee for repayment.

so 2 part question…

1)do you think this will eventually blow up?

2)if so, how can you make money?

-some short targets would be apollo group and navient

I’m only about three four years ahead of you.

http://www.analystforum.com/comment/91353554#comment-91353554

hows that trade working out for you?

LOL i was about to post the same thing

[Tactics]

I think borrowers are more likely to default on a $200K mortgage than a $30K student loan. For student loans, you might miss a payment or two, but you’ll somehow grind through the $200-400/month debt service to avoid going to collection/bad credit.

[Yayyywork]

In my experience when I was out of work for an extended period of time the companies were very willing to work with you and there are a number of options available. Dinged up my credit pretty bad but its recovering now and I am all caught up.

I think you underestimate amounts of student loans as well Tactics, most people I know are paying 500-1200 a month. With interest rates set to rise everyone is a bit worried what may happen.

[Sweep_the_Leg]

@mk17

@Sweep_the_Leg

@igor555

not many are talking about this asset class. these loans are not collateralized which could be worse than the mortgage crisis for lenders and investors. avg debt is about 30k and avg starting salary is 44k and lots of unemployed graduates still. private loans make up about 8% of the market meaning no govt guarantee for repayment.

so 2 part question…

1)do you think this will eventually blow up?

2)if so, how can you make money?

-some short targets would be apollo group and navient

I’m only about three four years ahead of you.

http://www.analystforum.com/comment/91353554#comment-91353554

hows that trade working out for you?

What, gold? Very well, thanks. Still don’t know how to short student loans though.

[igor555]

@Tactics

I think borrowers are more likely to default on a $200K mortgage than a $30K student loan. For student loans, you might miss a payment or two, but you’ll somehow grind through the $200-400/month debt service to avoid going to collection/bad credit.

these folks dont have jobs or are working some part time or low paying gig so they dont have mortgages.

they probably spend most of thier income on rent and other crap so student loan repayments are not at the top of their list or they dont have enough money to cover the monthly payment

[igor555]

https://www.washingtonpost.com/news/grade-point/wp/2016/06/13/obama-administration-issues-rules-to-overhaul-student-debt-forgiveness/

[klaudnine]

Why not print money and pay back all debt on government’s dime since USD is so strong… that would boost the economy as well as people will have more money to spend.