Monday, February 9, 2009

Lenders Get Paid Twice

Bob Fertik has written here that the Term Asset-Backed Securities Loan Facility (TALF) already includes buying up bad student loan debt.

An expansion of the Fed's Term Asset-Backed Securities Loan Facility (TALF) to include assets beyond the student-loan, auto-loan and credit-card debt it was set up to absorb...

Bold is my addition

Does this mean that private student loan lenders will get paid twice, first through the government and then through debt collectors on student for the rest of the student's life?

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