I have read this is not possible, because most of the loans are guaranteed by the federal government. For-profit colleges could make good shorts, but those stocks have already been hammered a lot.
back
2 comments
This may be the big problem.
That said, it's possible we end up with a timing problem. What happens if Medicare, Social Security, and the Department of Education all become insolvent at the same time?
The political pressure will almost certainly leave the DOE out in the cold, meaning those loans might not be guaranteed.
They can't be discharged in personal bankruptcy either - perhaps the most one-sided, offensive, corporate-written, f*^%#d up law I've ever seen passed.