The clock started ticking on a financial time bomb this week for student loan borrowers — those in default will now be referred to debt collections.
Because of the messy state of the student loan world, the economic fallout could be far more widespread than anticipated, hitting some who typically would be able to pay back loans. It also comes amid recession fears, worries over higher inflation, and a slowdown in hiring.
“Student loan asset-backed securities (SLABS)” I had to look that up.
Just for clarity of the thread, apparently SLABS contain private student loans. Many of the other conversations here are referring to Federal student loans. So these conversations don’t apply to each other. However, a single person can have loans of both types.