Student loan crisis talk

[rowland]

Something else to worry about:

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

Calhoun’s the president of the nonprofit Center for Responsible Lending. For decades he’s been keeping watch to protect people from reckless lending. He says that with student loans, just like with the housing crisis, there’s no consideration about whether the person getting the loan will be able to repay it.

“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.