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Here’s Why the Student Loan Market Is Completely Insane

President Obama made news this week by expanding a student loan program to broaden the eligibility of borrowers and proposing to limit monthly payments to 10 percent of a student borrower’s income. On the margin, such moves might help. But the administration’s efforts don’t address a more fundamental problem: These loans aren’t calibrated for risk. In other words, students from Harvard and less-prestigious regional colleges are thrown in the same bucket, despite quite different risk profiles.

By Eric Chemi

Full Story: http://www.businessweek.com/articles/2014-06-11/heres-why-the-student-loan-market-is-completely-insane#r=hpf-s

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