The regulator said about half of private student loans are sold by banks to Wall Street in the form of asset backed securities. According to the official, ABS servicers have less discretion in easing repayment terms for student loans than they do mortgages.
As a percentage of overall consumer debt, student loans rank second to mortgages. As of the end of 2011, more than 850,000 private student loans totaling $8 billion were in default.