• AutistoMephisto@lemmy.world
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    1 year ago

    Reminder that student loans, like mortgages, are rolled up into an investment vehicle called the SLABS, or Student Loan Asset Backed Securities. Student Loan Forgiveness would tank the value of the SLABS, and I guarantee you our elected officials have money tied up in them. Since a student loan can’t be discharged through bankruptcy, it’s typically a very safe investment.

    • argarath@lemmy.world
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      1 year ago

      It is absolutely HORRIBLE and immortal to have an investment that gains money of others being in debt. That is SO fucked up

    • chiliedogg@lemmy.world
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      1 year ago

      Government student loans can’t be discharged.

      I got private student loans, and eventually stopped paying and they were discharged. The discharge counted as income on my taxes, but still way cheaper than paying criminal interest for 30 years.

    • afraid_of_zombies@lemmy.world
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      1 year ago

      I should do is make a SLAB composed of borrowers who are never going to pay back and ones that certainly will. Then convince pension managers to buy those SLABs from me.