Tuesday, September 04, 2007

Private student loans next credit debacle?

Reeling In the College-Bound - New York Times

I'm jealous -- Dan Meyers founded a private student loan company, First Marblehead, modeled after other securitized loans, and made bazillions.

But did he make it by exploiting students?

From this New York Times article, I'd say he didn't.

However, the business he originated may be. Congress and New York state are investigating predatory lending practices by the student loan industry.