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News Link • Education: Government Schools

Lax Student Loan Standards Created Debt Crisis

• ABC News

Lax loan standards have left many college graduates struggling to repay private student loans, according to a new study.

A report by the Consumer Financial Protection Bureau and the Department of Education found that the  private student loan market grew from less than $5 billion in 2001 to over $20 billion in 2008. In 2011, the figure declined to less than $5 billion as banks began to tighten credit standards and the number of undergraduates with co-signers hit a high of 90 percent.

 

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