How Wall Street Profits From Student Loans

Student loans are a big business. The U.S. has amassed over $1.7 trillion in outstanding student debt. But while more than 43 million Americans are currently holding student debt, many are unaware of what exactly happens with their loans. Billions of dollars worth of student loans are packaged and sold as assets known as SLABS to some of the biggest investors in America. So what exactly are SLABS and how does it help Wall Street profit from student loans?

Chapters:
00:00 — Introduction
01:21 — Securitization and SLABS
06:17 — Bubble?
09:43 — Now and future

Produced & Edited by: Juhohn Lee
Animation: Christina Locopo, Alex Wood
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images
Additional Sources: National Center for Education Statistics, The Bank for Canadian Entrepreneurs, Guggenheim Investments, Comptroller of the Currency Administrator of National Banks, Federal Reserve History, California Debt and Investment Advisory Commission, Seeking Alpha

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How Wall Street Profits From Student Loans