| Simple question, do universities invest in SLABS? |
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fibonacci
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| Simple question, do universities invest in SLABS? |
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I'm no financial expert, but do universities invest in securitized student loan debt? It would be interesting to see just how much universities invest in SLABS.
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Sat May 21, 2011 6:28 am |
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coaster
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I wonder if that would be a conflict of interest.
After all, if they do that, wouldn't it be in their interest to see their students incur more debt? Conflicting with their interest of given their students the best possible education for a reasonable and fair price?
Or maybe I missed something over the last four decades and universities aren't into that sort of thing any more?
Maybe we should start taxing universities on their profits. Which, for a public state-run university would prove a real hoot.
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Sat May 21, 2011 6:36 am |
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fibonacci
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quote:
Originally posted by coaster
I wonder if that would be a conflict of interest.
After all, if they do that, wouldn't it be in their interest to see their students incur more debt? Conflicting with their interest of given their students the best possible education for a reasonable and fair price?
Or maybe I missed something over the last four decades and universities aren't into that sort of thing any more?
Maybe we should start taxing universities on their profits. Which, for a public state-run university would prove a real hoot.
This is what I'm trying to get at. I would be interested to see if universities actually invest in SLABS. What is stopping them? They could collect 2x's on a student, once on the tuition and fees, and another on SLABS. So far I can not find any information out there on exactly who invests in SLABS. I wouldn't be surprised at all if universities actually invested in SLABS. Of course this is nothing more than just speculation until someone can actually say for sure that universities do. Tuitions keep rising well above the rate of inflation, are universities motivated by the big payouts if they are indeed invested in SLABS? Do universities have to make their investments public information? If so, could I find this information somewhere?
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Sat May 21, 2011 6:49 am |
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coaster
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Your question spurred me to spend some time googling. I spent about 20 minutes and I couldn't find any specific portfolio holdings. I found several statements of policy, one of which mentioned "asset-backed securities" as being a permitted investment. It appears that public universities have so many different investment accounts that trying to find anything specific is like finding your way through a labyrinth.
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Sat May 21, 2011 4:56 pm |
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Darkstarr
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http://www.regulations.utah.edu/administration/guidelines_3/endowmentPool.html
universities are free to invest as any other investor would. They are simply limited to the same regulations as any of us by our regulating body for securities in our given location. I found this in several seconds online. Basically this document states they are free to invest in anything considered "fair game" by their securities regulator, when you jump to the securities regulators legal documents it will state that SLABS are infact fair game. Conflict of interest from a students prospective absolutely, do they make this play with this in mind, who knows.
Winners set the pace, haters follow
Financial Advisor - TD Bank Financial Group
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Sat May 21, 2011 5:23 pm |
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oldguy
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fib:
1 1 2 3 5 8 13 22 35 57 - and so on.
Ratio - 1.618
Reciprocal - 0.618
Do you follow the Elliot Wave theories? 
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Sat May 21, 2011 6:21 pm |
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eastmn
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Of coarse they do. Google this:
"state investment in student loan derivatives"
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Tue May 24, 2011 7:30 pm |
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