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  1. Default If you could invest in student debt, would you?

    Just a random thought that floated through my head recently and got me wondering. I know technically you could by way of a stock like Navient/Sallie Mae but that is still an equity at the whims of the market, or if you happen to be an institution you could do SLABS. But on a more practical level... If there was some kind of financial product that allowed you to directly invest in an individual's or group of individual's loans - would you do it? It seems to me like it could be an interesting strategy, not unlike a bond/cd/annuity, that would guarantee some modest return to the investor while offering better rates than the big lenders to the student. As long as the screening process didn't screw up, it seems like a pretty stable investment since it is non-dischargeable debt too. Anyway... that's my shower thought for the day.
    What do you guys/gals think?

  2. Default

    Interesting idea, but isn't the student debt bubble the next one that is supposed to pop?

  3. Default

    So they say, but it's a non-dischargable debt and if (just like the housing bubble) you didn't lend to just any random person who came along then it would be pretty secure. I had some other people I mentioned it to say that if they could lend to STEM students only, they would all day long.

  4. Default

    If you could by debt owned by doctors and google employees to be, yeah sure!

  5. Default

    I would not want to invest in the ridiculous charges that the college system puts on students. It's quite ridiculous how much education costs these days, compared with how hard it is to get a decent enough job that you can pay it off within 10 years in a lot of cases. I do not agree at all with the system, it needs to be modified. So investing in something I would hope changed and therefore I'd lose money seems counter-productive to me.

 

 

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