By BRIAN TUMULTY, Journal Courier
The nation’s next federal loan-related time bomb may be ticking among for-profit colleges that aggressively recruit low-income students who never graduate and can’t repay their loans, a Senate committee was told Thursday. Although fewer than 10 percent of college students attend for-profit colleges, these schools account for 44 percent of all defaults on federal student loans. “We’ve just loaded one generation of Americans with mortgage debt that they can’t afford to pay back,” portfolio manager Steven Eisman of FrontPoint Financial Services Fund told members of the Senate Health, Education, Labor and Pensions Committee. ”Are we going to load up a new generation (with) student loan debt that they can’t afford to pay back?”
http://www.jconline.com/article/20100624/NEWS09/100624020
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