Billions of dollars worth of student loans are packed and sold as assets known as student loan asset-backed securities to some of the biggest investors in America.
But as student loans continue to balloon, experts have expressed growing concerns surrounding the SLABS market.
She continued, "I think one of the key ways to uncover the similarities between student loans and mortgages is to look at the affordability issue."
But the Consumer Financial Protection Bureau estimates that one in five student loan borrowers have risk factors that could cause them to struggle when federal student loan payments resume in October.
Watch the video to learn more about why experts are concerned about the state of the SLABS market.
Persons:
Louis, Allison Pyburn, Eleanor Xu, Elen Callahan, Xu
Organizations:
U.S, Federal Reserve Bank of St, U.S . Department of Education, Financial, Seton Hall University, Structured Finance
Locations:
America