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Reply #35: To the investors who bought the securities...
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sfecap
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Sat Nov-15-03 04:21 PM
Response to Reply #16 |
35. To the investors who bought the securities... |
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...and the banks get a bit for administering the deal.
The loans are securitized. (Bundled) They are marketed as bonds (usually) to investors who buy the bonds, and collect the interest over the term of the bond.
The banks get the cash, and use it to make more student loans.
It's much like the mortgage markets.
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