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Glossary Financial Aid for Undergraduate Study / Term

Secondary Market

Institutions that buy loans from lenders, usually at a discount. This practice provides more capital for lenders to make additional loans. If a loan is sold, the secondary market is responsible for managing and servicing it. The sale of a loan does not affect the borrower since the terms of the loan remain the same.

Permanent link Secondary Market - Creation date 2020-02-18


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