What a Student Loan 'Bubble' Bursting Might Look Like

Re:What a Student Loan 'Bubble' Bursting Might Look Like by nopriorarrests on Wednesday January 02, 2019 @05:29PM (#18810948)

>On the federal side, increasing defaults mostly reduce the difference between loans and grants

Interesting tidbit here is that half (yes, half) of the US government's financial assets are student loans.

Something I find very hard to comprehend, tbh.

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Re:What a Student Loan 'Bubble' Bursting Might Look Like by acover on Wednesday January 02, 2019 @05:55PM (#18811144)

I believe this does not include most of the mortgages. For example, Fannie Mae has 3.35 trillion in assets, which dwarfs total student loans.

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Re:What a Student Loan 'Bubble' Bursting Might Look Like by dragonwriter on Wednesday January 02, 2019 @06:05PM (#18811220)

> I believe this does not include most of the mortgages. For example, Fannie Mae has 3.35 trillion in assets, which dwarfs total student loans.

Fannie Mae is a publicly-traded, privately-owned corporation, despite being federally chartered for a public mission.

So, yes, their holdings are not counted in government holdings, because they aren't the government.

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Re:What a Student Loan 'Bubble' Bursting Might Look Like by zeusk on Thursday January 03, 2019 @06:08AM (#18814291)

Fannie Mae and Freddie Mac are currently under the authority of the Treasury, since the TARP program.

Which is why, their stock is worth a lot less than even their own book value.

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Re:What a Student Loan 'Bubble' Bursting Might Look Like by acover on Wednesday January 02, 2019 @09:59PM (#18812462)

You are right. There is an implicit government backing though with a line of credit from the US Treasury.

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Re:What a Student Loan 'Bubble' Bursting Might Look Like by heyjudy on Wednesday January 02, 2019 @07:15PM (#18811665)

Including SGE's is a gray area of what's "business" and what's "commercial."

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