Sallie Mae Sallie Mae is a quasi-governmental agency that packages individual student loans into pools of loans and sells shares of these pools to investors as Sallie Mae bonds. a) What is this process of turning individual loans into bonds called? b) Why are these bonds usually less risky than individual student loans? c) Why does this process usually increase the supply of loans to students? d) Suppose a severe recession (like the 2008 slump) leads to high levels of unemployment amount recent college graduates, resulting in a substantial umber of student loan defaults. What is the effect of the risk in defaults on the prices of Salle Mae bonds? e) Given your answer in (d) above, what is the effect of a spike in student loan defaults on the net worth of banks?