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Political Discussion
Reply to "SCOTUS on Student Loan 9 - 0"
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[quote=Anonymous]The funds to loan people money for college tuition, books, and spring break trips come from investors who are buying student loan asset backed securities (slab) If you pay off some of these loans early, there is less interest going to investors, creating prepayment risk. The result is that investors are less willing to buy future slabs, forcing the interest rates to increase on future generations to incentive sufficient investment for new borrowers. TLDR: todays student loan forgiveness increase the interest rates for tomorrows borrowers[/quote]
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