Online Learning Update

January 1, 2020

Student Loans A Lot Like The Subprime Mortgage Debacle, Watchdog Says

Filed under: Online Learning News — Ray Schroeder @ 12:10 am


“Once again, it’s the mismatch between the debt and the borrower’s income, their ability to repay,” Calhoun says. This time around it’s the government making the vast majority of the loans. That’s effectively turned the Department of Education into the country’s largest consumer lender. And, Calhoun says, more and more people can’t pay. “Already in the student loan world, we are seeing default levels that approach what there was in the subprime mortgage world,” he says.

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