The Federal Home Loan Mortgage Corporation (Freddie Mac) plays a significant, albeit often indirect, role in the student loan market. While not a direct lender, Freddie Mac’s involvement primarily centers around the securitization of student loans, a process that bundles and sells these loans to investors. This activity impacts interest rates, loan availability, and ultimately, the borrowing experience for students. Understanding Freddie Mac’s influence is crucial for navigating the complexities of student loan financing. This exploration delves into the historical context of Freddie Mac’s participation in the student loan sector, comparing and contrasting its activities with those of Fannie Mae. Read More …
