This report details the risky practices and debt that stemmed from the boom and bust of the private student loan market in the past ten years. According to the report’s estimates, outstanding student loan debt in the U.S. topped $1 trillion in 2011. Students were yet another group of consumers that were hurt by the boom and bust of the financial crisis. The report found that too many student loan borrowers were given loans they could not afford and sometimes for more money than they needed. They are now overwhelmed by debt and regret the decisions they made. There are striking similarities between stories of the private student loan market and stories of mortgage market in the years leading up to the financial crisis.

Before the financial crisis, some lenders in both markets engaged in aggressive marketing and risky underwriting. They also originated loans for immediate sale. Not all lenders chose this path, but enough did to produce a market-wide trend. Contents of this report: Lenders, Loan Markets and Products; Borrower Characteristics and Behaviors; Consumer Protection; Fair Lending Issues; Recommendations; Student Loan Glossary. Figures and tables. This is a print on demand report.