Student Loan Meltdown: Growth and Risk in a Stuggling Loan Sector

This Financial Insights report examines current dynamics and risk issues relative to the student loan market. The student loan market has grown dramatically over the past 5 years with new products and distribution channels. Over the past year, the student loan industry has fallen into a dysfunctional state relative to capital to lend and resulting risk.

"As the cost of education has increased, student lending has progressed from a minor boutique lending activity done by banks to a high-volume specialized segment with very complex risk and financial challenges."- Dana Wiklund, research director, Global Risk Management