I would be interested if anyone could point me in the direction of the documentation for a student loan securitization, online so that I can work with it on a blog or posted for classroom use. It’s strange – I study and teach securitization, but though I routinely work and have my students work through various mortgage or automobile or credit card securitizations, I just realized that I’ve never actually looked at a student loan securitization.
For all the time I’ve spent on credit derivatives from the subprime crisis, I find I don’t know, for example, what derivatives are issued from a student loan securitization. I don’t even know, for example, if there was ever a CDO market built out of student loan securitizations. In what ways, if any, are they leveraged up through CDO-type instruments? How does the student debt secondary market differ from mortgages or credit cards or automobiles, etc., in terms of kinds of securities, guarantees, etc.? How would the popping of this bubble differ from residential mortgages or other securitized assets?
More broadly, I am interested in learning about literature that explains the nuts and bolts of the student loan secondary markets – legal structures, documentation, and a description of the securities in this market. I read the Economist’s description this week of the US student loan primary products, and was amazed at how little I knew about them. And how many kinds there were. (Comments are open on this post. Please stay with the specific issue of the nuts and bolts of the student loan primary and second market, particularly from a lawyer’s financing perspective.)