CFPB Says Students Victimized by ‘Subprime-Style’ Lending

Students grew indebted and went into default at the hands of a “subprime-style” private loan market that contracted amid the 2008 financial crisis, a U.S. government report issued today concluded.

“Our findings reveal that students were yet another group of consumers that were hurt by the boom and bust,” Richard Cordray, director of the Consumer Financial Protection Bureau, said in an e-mailed statement. “Too many student loan borrowers are struggling to pay off private student loans that they did not understand and cannot afford.”