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.
Tuition inflation combined with rising college enrollment rates and a challenging jobs market has some people worried that student loans are in a bubble that will burst and break the financial system. Deutsche Bank's Torsten Slok is... 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