http://finance.fortune.cnn.com/2013/02/14/subprime-student-loans/?iid=F_F500M
Unlike the U.S. mortgage market, an imploding student loan market will have few immediate consequences, and that could be its biggest risk.
By Lauren Silva Laughlin
FORTUNE -- Make no mistake: the student loan market is a
disaster. The Wall Street Journal recently reported that a third of
borrowers in the $900 billion market are subprime, and about a third of those
subprime borrowers aren't paying bills on time. Lending standards are not rigid.
College education prices are inflating. And, at the very least, young college
students facing a poor job market are offered seemingly endless amounts of cash
with little initial recourse.It's tempting to draw parallels to the U.S. mortgage market. But the two markets, at close glance, are nothing alike. A blow-up in the student loan market would have few immediate consequences -- and that is its biggest risk.
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