Tuesday, May 17, 2011

"Bad Education" (n+1)
Excellent article from n+1 examines the student loan bubble, in which banks and colleges take advantage of students to an extent never before seen in higher education.

"high and increasing college costs mean students need to take out more loans, more loans mean more securities lenders can package and sell, more selling means lenders can offer more loans with the capital they raise, which means colleges can continue to raise costs. The result is over $800 billion in outstanding student debt, over 30 percent of it securitized, and the federal government directly or indirectly on the hook for almost all of it."