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April 5 (IFR) - San Francisco-based start-up lender SoFi has a novel idea to revive the moribund market in student-loan bonds -- get alumni to invest in their schools. More precisely, get them to invest in securities backed by loans to their schools' students, who would in turn benefit from interest rates below the current rate on federal loans. "Students get a lower interest rate, and alumni get a way to support their university while earning a financial return," Mike Cagney, SoFi CEO and chairman, told IFR. ...?
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