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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This isn’t Michael Burry pulling apart synthetic CDO level stuff. Show any junior analyst the raw data on default rates and they’ll be terrified. In part because they’re a junior analyst working on Wall Street largely to pay off their massive student loans.
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Replying to @AustenAllred
Got any good links on what assets are resting on top of this?
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Replying to @orthonormalist
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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Replying to @AustenAllred @orthonormalist
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?1 reply 0 retweets 0 likes -
Yes, it’s capped, short-term student equity
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Replying to @AustenAllred @TheCharlieton and
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?1 reply 0 retweets 0 likes -
Replying to @TheCharlieton @orthonormalist and
Yes, though rates and repayment lengths would be different. So you’d know going in that if you study English it’ll be
$x for n years, Physics will$y for@n years, etc1 reply 0 retweets 0 likes -
Replying to @AustenAllred @orthonormalist and
Well color me smitten. Do you think Lambda will ever offer majors other than coding to prove the model?
2 replies 0 retweets 1 like
yes.
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