Landmark Study Shows Cycle of Boom and Bust in Private Student Lending
In the first study of its kind, the Consumer Financial Protection Bureau found:
- Americans owe more than $150 billion in private student loan debt.
- Ten percent of recent graduates of four-year colleges have monthly payments for all education loans in excess of 25% of their income.
- In 2009, the unemployment rate for private student loan borrowers who started school in the 2003-2004 academic year was 16%.
- Default rates have spiked significantly since the financial crisis of 2008.
- Cumulative defaults on private student loans exceed $8 billion, and represent over 850,000 distinct loans. Read more
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Proposed Student Loan Regulations Introduce New Repayment Option
The Department of Education today published proposed regulations including information about a repayment option that will make federal loan payments more manageable for certain borrowers. Read more>
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Credit Suisse's Top U.S. Economist Explains Current Student Loan Crisis in 9 Charts
Neal Soss, Credit Suisse's leading U.S. economist recently published a report entitled, "A Lesson on Student Loans," in which he laid out the current student loan crisis in nine charts. "In the past few years, the volume of student loans has increased dramatically, reaching almost $1 trillion by the end of Q1 2012," wrote Soss. "Student loans outstanding have surpassed credit cards and auto loans as the second largest form of consumer debt, following mortgages." Read on
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