Is there any way to make money off student debt?

I'm not sure. Can you perhaps buy bad debt on the cheap and then become the nasty collector?

That or become a lender of last resort.

Smallcock said:

Exactly. It's clear that many students are going to be slaves to school debt for the rest of their lives. Is it feasible or even legal to buy that debt and collect at a lower rate. The student benefits by paying less interest. It's a huge business that the government seems to have a complete monopoly on. Maybe I'm mistaken.

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Sure, the key is get in at the outset as a government-approved lender (unlikely), or if you can convince the originating lender to sell you the debt at a discount. Then you have to find a way to collect more than what the originator thought would be realizable.

It would be great if you could consolidate a bunch of loans and then make a shotgun settlement at a deep discount, but I don't know how the mechanics would work.

I doubt you can buy debt in Canada, but we TERB guys are all indirectly benefiting from the surge of student costs/ loan as this had pushed young, beautiful ladies into our arms

In my days student loans were obtained from banks, guaranteed by the government, and the government paid interest until 6 months after graduation before the matter becomes strictly between you and the bank.

Are they all government loans instead of bank loans now?

Smallcock said:

Exactly. It's clear that many students are going to be slaves to school debt for the rest of their lives. Is it feasible or even legal to buy that debt and collect at a lower rate. The student benefits by paying less interest. It's a huge business that the government seems to have a complete monopoly on. Maybe I'm mistaken.

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At least there is light at the end of the tunnel for student debt with the government. The majority of the students including myself have managed to pay it off. Can you imagine if it was the private sector funding this debt? We would never have been able to pay it off.

Smallcock said:

Student debt is at record levels and every year more students go into debt attending post-secondary institutions. Is there a way for an investor to make money off their misery or is the government the only benefactor?

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The student loans industry in the U.S. is described in these articles.

http://www.bloomberg.com/news/artic...default-shows-who-profits-at-taxpayer-expense

http://www.bloomberg.com/news/artic...bt-collectors-profiting-from-student-loan-woe

Due diligence on some of the publicly traded companies mentioned might reveal some gems to invest in.

Maybe Sallie Mae (SLM) is due for a pop?

A friend simply declared bankruptcy when her debts got too high, then managed to find jobs under the table that paid cash. Her credit rating is fine now after several years.