I’ve spent the past few days on Wall Street, and any hedge fund that looks into the student loan data can see that a crisis is coming. No one knows what to do about it, but the data is clear.
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Got any good links on what assets are resting on top of this?
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The only obvious ones are for profit colleges. I’m trying to undermine and replace student loans, I’m sure there are smart plays, not sure what they are.
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Am I right to think that
@LambdaSchool is a student equity model rather than a student debt model? Or is it more like preferred stock with an interest rate? -
Yes, it’s capped, short-term student equity
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In other words 17% of salary for two years, only when you’re making $50k+, capped at $30k total.
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Do you think it could work for Harvard? Or, closer to my heart,
@bostoncollege? Seems to me the bargain these schools make is subsidizing chem degrees w English majors? Maybe the question is this; could the capped equity payment scheme work for the trad liberal arts schools? -
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Well color me smitten. Do you think Lambda will ever offer majors other than coding to prove the model?
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Working on Wall St sounds fun actually.
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Join the military and then you don’t need student loans and you can still work on the street
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Wall street not the street.
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There’s an actual street on Wall Street no?
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True defaults are (too) high, though half that of 2010.
$NAVI data on FELP loans here from their recent roadshow. Credit lower enrollment in high-risk schools and lower borrowing per student (more discounts offered by schools). Not a 'real" solution. Discl: we are short$NAVIpic.twitter.com/Q4ETaqcLJF
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Related - I strongly agree with
@fredwilson's take here: https://avc.com/2018/03/uncertainty-and-risk … -
We could still have several good years but the peak stock market, trade war, and distance from previous financial crisis make things feel risky.
End of conversation
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The worst part is there is no underlying assets like with a CDO, also the debt can’t be discharged through bankruptcy
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I’ve been saying this for years and no one listens. They seem to think it will sold itself
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