Posted by Chuck(G) on September 22, 2003 at 13:56:13:
In Reply to: Re: Re: Re: Re: Re: Re: Re: Re: Making a living (and paying loans) posted by Rick Denney on September 22, 2003 at 12:18:58:
Student loans are a great financial vehicle for lender. Many, if not most, loans are guaranteed by a state or federal (e.g., SallieMae) agency; usually a 3 point origination fee and you are shielded from the borrower declaring bankruptcy. Many variable rate, starting at about 6 percent with a cap at 8+ percent, significantly better than bonds or other interest-bearing paper.
Heckuva deal--for the lender. So does it surprise anyone that the once-last-resort student loan is now being promoted heavily.