I keep hearing reference to the "student loan bubble". Like the housing bubble and the credit bubble. Banks are starting to pull out of the program (like JP Morgan Chase). So what happens when this one bursts?
Seriously, I've told my kid that he will either need to get scholarships, or join the military, unless things drastically change in the next decade-which they might. We can't save enough to put him through school...we can't save enough to retire on...we no longer have home equity to borrow against (which was not a good idea even when we did, so we didn't do it), and student loans have become some kind of indentured servitude for so many people it scares the shit out of me.
Quote:
"We just don't see this as a market that we can significantly grow," Thasunda Duckett tells Reuters. Duckett is the chief executive for auto and student loans at Chase, which means she's basically delivering the news that a large part of her business is getting closed down.
The move is eerily reminiscent of the subprime shutdown that happened in 2007. Each time a bank shuttered its subprime unit, the news was presented in much the same way that JPMorgan is spinning the end of its student lending. http://www.cnbc.com/id/101012270
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