Lets say hypothetically every student in the USA simultaneously refused to pay back their student loans, what would happen and how can I profit out of it?
get a loan and don't pay it back
>>1223103
I'm fairly sure they've sold that loan money as bonds, so.. maybe you could short the bonds?
they would put them all in prison to stamp license plates for $0.02/hour
>>1223182
Student Loan Bonds are government backed, they're guaranteed for 97% of their face value.
If you want any type of return on a short position, you'd be much better off with municipal bonds that aren't guaranteed.
>>1223200
Invest in privately owned prisons
>>1223103
Well if they are not paying back student loans there is a good chance they don't think they need to contribute anything so will become welfare leeches. Find out who supplies gubment cheese an food stuffs and invest with them? I would look at who is going to be tapped to keep these slackers alive. That is who will be making money.
>>1223103
Started typing out a long and detailed economic/financial response, but honestly..
Bleh.
It's true they are tied to bonds though. It would almost certainly mean Sov. Default for the US and would be a major shock to the US Dollar.
>>1223103
you can't profit off of it
there's no way to buy the debt
These are not dischargeable. Nonpayers would be garnished and raped forever.
>>1224145
Aren't they packaging these up now like they did with mortgages in Mortgage Backed Securities? Maybe he could get some swaps... Lol my finance knowledge only comes from The Big Short movie so I probably don't know if you could make money off student loans
I have been very intrested in student loans with deferment and I would like to know how to write loans that had very long deferment on them
***Meaning to be a originator of the student loans and giving them to the banks and student loans with long deferment are very appealing to the banks and the like them
***What is deferment-it only applys to subsidized student loan means the Federal Goverment covers the interest while the student is in college or in economic hardship
***But how do you have it where the deferment is made for over 7 years instead of 5 years so the bank makes more money???????????
>>1224002
>who supplies gubment cheese
That would be Kraft, Maruchan and Nissin my man
>>1225782
How do you garnish the wages of a NEET who lives with their parents?
