Have student loans in usa

All my shit is gonna get forgiven. Get owned nerd.

what the fuck is an estonia

53 state just gib the weapons and protect watch them make hot women and technology

federal loans yes but they only cover 5k per school year
most state schools are around 30k a year so people take out private loans
>collateral
HA!
i saw another user (a euro) confused about american lending practices
for private student loans you dont need collateral, everybody qualifies
isnt this risky for the creditor? no, bc it is (nearly) LEGALLY IMPOSSIBLE to declare bankruptcy on student loans
like its literally codified that students are bound to their debt forever
and if they default or even die, the debt gets passed onto their family members, it cannot be restructured (this is collateral in a sense but its not technically collateral)
now in recent years apparently some courts are getting more lenient toward granting student loan debtors bankruptcy and apparently its technically possible to do so if youre able to prove beyond a doubt that the debt will never be paid, but it rarely ever happens and its so difficult it may as well be impossible
>Who are you borrowing the money from?
for private loans there are like 1000s of lenders, few of which are actually banks
most lenders specialise in student loans
how do these lenders finance these loans? they basically use borrowed money themselves (borrowed from big banks/financial institutions)
how do they make money?
the lenders are in the business of taking a bunch of student loans then packaging them into securities called student loan asset backed securities (SLABS) which function exactly the same as the mortgage backed securities which caused the meltdown in 2008
these SLABS can be bought and sold by financial institutions and pay out a dividend based on the interest accrued by the underlying loans
since its impossible to declare bankruptcy on student loans, these SLABS are considered rock solid collateral and are very valuable
so the ground level lenders who lend to students round up the student loans into SLABS and sell these SLABS for big profit to financial institutions

its so incredibly fucked

>student loan asset backed securities (SLABS)
What in the fuck.

Attached: 1648363844948.png (1000x871, 407.9K)

please send help user

Attached: 1653882032748.png (714x575, 76.6K)

>one shot at life
>american
holy shit lmfao

I wish I knew about that earlier so I could've invested in it

Attached: 1600819578039.png (1267x785, 153.75K)

yes
ive never seen anyone mention this anywhere except for one schizo on reddit but basically its one of if not the main driver of the insane student loan lending craze in america
in fact the only reason why i know they exist is bc after watching the big short i thought "i wonder what other asset backed securities exist besides mbs" and specifically looked up student loan back securities
the other thing is that no one knows how what portion of the abs market is slabs, but one estimate i checked was around 20%
maybe this doesnt sound like much, but since theyre considered "rock solid" since the debtors cant declare bankruptcy, these slabs are likely widely used as collateral, meaning anything that affects them might have a ripple effect across the financial world
who knows how leveraged banks are on slabs
its not just slabs tho, auto loans, credit card loans, any loan type you can think of basically is packaged this way into a security

insane rabbit hole to go down, i just felt the need to say this bc nobody else is
heres the reddit post about it btw reddit.com/r/Superstonk/comments/ros6ii/student_loan_asset_backed_securities_slabs_the/

youre not even able to invest in a derivative of it
these are only available to big banks and hedge funds

I have about 9k of student loans left. If loan forgiveness actually ends up happening, I am unironically going to travel Europe.