The Best Stock to Own if Student Loans Are Forgiven
Student loan forgiveness has been a hotly debated topic in the early days of Joe Biden's presidency. Among the many potential beneficiaries is one small Lincoln, Nebraska, company that could rake in more than $1 billion in cash flow if the loans are forgiven. Here's how.
Nelnet (NYSE: NNI), a mini Nebraska-based conglomerate, owns a $19 billion student loan portfolio. Thanks to the 1965 Federal Family Education Loan (FFEL) program, Nelnet's student loan portfolio has very little credit risk. The program established that if a borrower defaults on his or her student loans, the federal government is responsible for paying at least 97% of the principal and interest back to the lender.
Source Fool.com
