"Subprime" Student Loan Crisis Looming?
Sallie Mae's chief executive announced today that the student lender would still retain some "core" profits in 2008, but that new loans would likely be made at a loss. He also indicated that Sallie Mae had been predicting a crisis in the $85 billion student loan market for some time.
More evidence of the "subprime" crisis morphing over into other areas of the economy and prompting what many are now just simply referring to as "Credit Crisis." Kevin LaCroix over at The D&O Diary has been noting the increasingly prevalent "credit crisis" lawsuits in the months following the initial wave of "subprime" mania for some time now. It looks as if he is not alone in his assessment of the generally growing concern of a broad based credit crisis prompting numerous lawsuits in differing economic segments.
