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JPMorgan Chase exiting student loan business

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Super Contributor

JPMorgan Chase exiting student loan business

Interesting announcement from Chase.

http://www.cnbc.com/id/101012270
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
2 REPLIES
Contributor

Re: JPMorgan Chase exiting student loan business

Well student loans are the next bubble that's going to burst so not totally suprised.

5/08 EQ 696.....9/13 EQ 796.....9/17 EX 824, EQ 843
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Established Member

Re: JPMorgan Chase exiting student loan business

 

Student loans are hardly dischargeable even in bankruptcy. The only bubble to burst would be a major change to those rules that would allow more borrowers to escape their debt.  Perhaps that is what Chase sees and at least for my part, I think it's the right thing to happen. Back in 70's and early 80's, there was  huge problem with defaults on student loans because there were no consequences for failing to repay. Many types of loans didn't even report to credit agencies. So we hit reverse and made them impossible to escape. That in turn has made the lenders become irresponsible and they gave out loans for programs with little chance of being repayed except for this new form of indentured servitude. That's not right either, especially since it hits mostly young people who have less experience and battle scars from the credit world to know better. All the "free" money has also driven up the price of education faster than the rate of inflation for many years. At one time, it was possible for almost anyone to start at zero, choose a cheaper accredited school and work their way through without any loans or help from mom and pop. Such a thing is barely plausible today.

EX: 785 EQ: 759 TU: 760 (9/14 via MyFico)