News

If you want to get an idea of how much of a true unsubstantiated bubble that has formed in student loan lending, read this article in how much school tuition cost has gone up over the last 30 years but specifically in the last 10 years. its absurd, and the explanation doesnt pass the sniff test to me, but just saying....

To give you an idea of what im saying. Mortgage deliquencies are down year over year. On the other hand, credit cards, autos and school loans deliquencies are up which require little to no income documentation. Its not too hard to identify why the rates of deliquency are higher to outlandishly high in some instances relating to cards, school loans and autos. why allow a borrower to 'state' income at all. As a bank, fintech, or alternative lender, seems like a very simple fix, and it would allow you to drop the high deliquency rates and likely net out the same profit on those products year in and year out.

Mortgage deliquency rates, which is a very reliable indicator of the overall health of the consumer have dropped from 2018-2019, which is a good sign on a broad scale. Obviously, this is happening because of the extensive amount of income documentation required nowadays to get a mortgage as oppose to auto loans and school loans which require no documentation and whose default rates range from 18-25 percent. crazy.

If this actually comes to fruition, it would be something very beneficial for consumers, which is long overdue. Sadly, its likely posturing.