How to make money off student loan bubble

The latest internet debate is focused on how 37 evil Republicans opposed Sen. Just to clear the facts up — students can already refinance their loans. The bank generates revenue from the loans through interest payments.

Shorting Student Debt Is The World’s Hottest Completely Hypothetical Trade | Dealbreaker

Warren wants borrowers to be able to refinance student loans with — you guessed it — the federal government, even though they are already getting a great deal. Warren is one of these politicians who think college should be free, and that there should be no such thing as student loan debt, so the bill was an attempt to make it next to free.

How would this be accomplished?

Mark Cuban Student Loan Bubble - Business Insider

By making the borrowing rate next to nothing. Students get loans that are effectively free. Colleges have no fear of loss because the loans are guaranteed by the federal government, so if the borrower defaults, the taxpayer is on the hook for the loss. Oh, and who pays for the decreased revenue intake from lower interest rates on student loan debt?

Warren naturally wants a minimum income tax on how to make money off student loan bubble wealthy. This is more of the same from Warren — redistribution of wealth from one group of people to another.

How To Profit From The Impending Bursting Of The Education Bubble, pt 1 - A Bubble Bigger Than Subprime | Zero Hedge

Of course you would. Tuition rates skyrocket due to the overabundance of federally guaranteed student how to make money off student loan bubble, for which a 3.

How to Profit From the Student Loan Bubble | InvestorPlace

And by the way, the federal government is going after for-profit education providers for deceptive sales practices while leaving public universities untouched. They are all after the same pot of cash, yet the for-profit folks are the only ones receiving SEC and DOJ complaints.

Furthermore, the Stock brokers 1 commission rates Fed reported that people with a college degree were twice as employable stock trader jobs in pune those without, so the diploma has value.

I would hedging strategies in indian stock market what used to be known as Sallie Mae, or SLM Corporation SLM.

It is no longer federally chartered or guaranteed and only makes private loans. I would avoid the tempting value trap of First Marblehead Corporation FMD as well. You may want to consider shorting either. If any of these stocks get hit because of negative news about student loans, I would consider buying, especially Bank of America, which I think is the most undervalued.

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