NNI - 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.
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The Best Stock to Own if Student Loans Are Forgiven