In this segment from Thursday's edition of The Motley Fool's everything-financials show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson discuss the growing concerns around former students being unable to repay loans and the potential reputational risk facing the big banks holding some of these loans.
While many of the biggest banks have scaled back student lending, some firms like Discover Financial Services have moved into the area more aggressively. Matt and David tell investors if they see this as a reason to be nervous about holding a big bank stock.
David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America and PNC Financial Services. The Motley Fool recommends Bank of America, PepsiCo, and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, PepsiCo, PNC Financial Services, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days.