By Tyler Durden
A key reason why a preponderance of the population is fascinated with the student loan market is that as USA Today reported in a landmark piece last year, it is now bigger than ever the credit card market. And as the monthly consumer debt update from the Fed reminds us, the primary source of funding is none other than the US government. To many, this market has become the biggest credit bubble in America. Why do we make a big deal out of this? Because as Bloomberg reported last night, we now have prima facie evidence that the student loan market is not only an epic bubble, but it is also the next subprime! To wit: “Vince Sampson, president, Education Finance Council, said during a panel at the IMN ABS East Conference in Miami Monday that lenders are no longer pushing loans to people who can’t afford them.” Re-read the last sentence as many times as necessary for it to sink in.
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Related reading:
Student Loans Outstanding Will Exceed $1 trillion This Year
USA Today (19 Oct 11)
Student Loans Outstanding Will Exceed $1 trillion This Year
USA Today (19 Oct 11)
The Next Bubble – Student Loans – Jon Talton
The Seattle Times (19 Oct 11)
Solari Report Blog Commentaries
William M. Diefenderfer: The Financial Hit Man of Student Loans
(23 Sep 11)
Special Solari Report: The Student Loan Scam
(11 July 11)
