Charlie Harper, writing at Peach Pundit, notes the worrisome parallels between the college-loan situation and the housing-loan bubble just before it burst a few years ago:
“Virtually anyone that applied got a loan. There was no consideration given to how the loan would be repaid. No calculations for repayment ability were required. Most borrowers overestimated the value of their purchase and underestimated the income that would be available in the future to retire the debt.
Back about five or six years ago, when the housing bubble was still rising, just about anyone could get a mortgage. Lending institutions were handing out ridiculously bloated home loans to almost anyone who breathed. It didn't matte... Read Post
Today’s Courier Herald Column: In retrospect, we should have seen the financial bubble coming. Virtually anyone that applied got a loan. There was no consideration given to how the loan would be repaid. No calculations for repaym... Read Post
In a clip on Inc.com, Mark Cuban says that colleges are going to go out of business. In the clip, Cuban talks about the student loan bubble, which he says will burst and end badly for colleges. The end of the student loan bubble, Cu... Read Post