Student Loan-Backed Bond Sales Plummet as Borrowers Skip Refinancings
- Refinancing ‘Doesn’t make sense’ for federal borrowers:O’Neill
- BofA, JPMorgan have axed their 2022 issuance forecasts by half
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Companies selling bonds backed by student debt have retreated from the market this year, as promises of loan forgiveness and higher rates deter borrowers from refinancing their loans.
The over-two-year freeze on federal student loan payments -- which was extended again in April, relieving many borrowers -- and the Biden Administration’s plan to formalize its long-awaited student-loan relief package has sent ripples across the private loan market this year, effectively diminishing it.