Friday, July 20, 2012

Boom in Private Student Loans Mirrored Mortgage-Lending Frenzy, Report Says (and it could end just as badly)

http://chronicle.com/article/Boom-in-Private-Student-Loans/133069/?cid=at&utm_source=at&utm_medium=en

Boom in Private Student Loans Mirrored Mortgage-Lending Frenzy, Report Says


The same kind of lending frenzy that created the subprime-mortgage crisis also fueled a dangerous boom in private student loans, says a report released on Friday by the Consumer Financial Protection Bureau and the U.S. Department of Education.
......

In its analysis for the report, the bureau found that about 40 percent of borrowers with private student loans had not exhausted their federal loan options. "Simply put, that's a mistake," Mr. Duncan said during the briefing. "Federal student loans are the best deal around."

No comments:

Post a Comment