Top Student Loan Servicer Sees No Need for Concern on Bond Risk
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While Americans are having trouble paying off their student loans, Navient Corp. Chief Executive Officer Jack Remondi says investors shouldn’t worry too much about the threat to securities backed by the debt.
Moody’s Investors Service and Fitch Ratings are considering cutting grades on almost $40 billion of federally insured student-loan bonds, potentially slicing some top-rated notes to junk status. The reviews are tied to the risk that the securities may not be paid off by their maturity dates.