I am increasingly concerned that the aggressive marketing of private alternatives to traditional student loan by commercial lenders is bad for consumers and the overall economy. Historically these loans were too risky for commercial lenders but new tech-driven collection tools and tougher bankruptcy laws make it more attractive for commercial lenders today. Since these same lenders were driven out of predatory home loan practices eight years ago, the perceived opportunities to reap profits in the new market of private student loans may be appealing. Yet we all know that what’s good for the banks isn’t necessarily good for America.
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