Imagine that a big, complicated company holds a huge portfolio of loans, many of which are in default or delinquency. The company’s leadership and some vocal shareholders demand a detailed review but receive a thin and incomplete report from the loan division.
Financial analysts at headquarters want to scrutinize the data. But the loan division doesn’t turn it over. Without better data, the firm can’t move forward.
This dysfunctional enterprise is fictional, but in at least some respects it bears more than a passing resemblance to the United States government, which has a portfolio of roughly $1 trillion in student loans, many of which appear to be troubled.
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