Student loan relief leaves market worried

Student loan
By Jennifer Kang
24 Nov 2020

Student loan forgiveness has been one of the main pillars of US president-elect Joe Biden’s election campaign, worrying student loan securitization specialists in the sector since early this year. With Democrat Biden’s inauguration around the corner, market participants are scrambling to prepare for new regulations that could impact their student loan ABS investments.

Democrats have proposed several versions of student loan forgiveness, with the most recent one being included in the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. The act was meant to forgive borrowers in distress due to the coronavirus pandemic, but did not come to fruition ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial