Monday, February 9, 2009

Hand in the Cookie Jar

An article written a year ago at Investopedia indicates that the student loan industry has gotten caught with their hand in the cookie jar.

According to the article, the student loan lenders, both federal and private, used the same securitization model that the banks used for massively inflated loans for California houses.

Just as the price of a house in California rose to over 10 times the average middle class wage, the price of a good college education has risen beyond the reaches of the middle class. That is, unless the unlucky bloke takes on vast never ending debt.

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