Can’t say I’m not pleased to see this happen. This is also a prime victim of the “deregulation” of the college loan sector. Bank of America and their ilk managed to find a way (err lobbied their way) to get into the college money action years ago. Christ, and why wouldn’t they. What better a deal than to be able to loan money to students at 18% and have the loan guaranteed by the government. You can’t file bankruptcy on student loans. Such a racket, I blame the poor people that the Democrats wanted to go to college.
So, geeeee, guess what happens when you get greedy private banks lending money that is gauranteed to be paid back in spades? A bubble in the College market…
I’m just glad my daughters have a few more years before they go to college.
Home builders and banks aren’t the only ones facing economic headwinds these days. America’s undercapitalized independent colleges are staring at a spiral of major threats to solvency as penny-pinching students and parents consider cheaper options, and funding sources dry up. As a result, they could be the next bubble industry to pop. blockquote>