5The Securitization of Student Loans in the U.S. is largely the result of:

Sun, 03 May 2026 13:58:51 +0000

The Securitization of Student Loans in the U.S. is Largely the Result of: The rapid growth and widespread securitization of student loans in the United States stem from a complex interplay of policy decisions, rising education costs, and financial innovation. Since the 1970s, federal student lending has expanded significantly, but it wasn’t until the 1990s and early 2000s that student debt began to be treated as a tradable financial asset. This securitization—where student loan receivables are bundled into bonds sold to investors—has transformed student loans into one of the largest segments of the global asset-backed securities market. Let’s explore the five key factors driving this phenomenon. --- ### 1. Federal Policy and Expansion of Federal Student Aid