Rising Student Loan Defaults Signal Litigation Ramp-Up

Law360, New York ( March 28, 2017, 3:31 PM EDT) -- The mortgage and auto lending industries are cautionary tales for student lending. When default rate increases begin to trend in particular markets, regulators take policy, legislative and enforcement actions in an attempt to correct the marketplace. Current student loan market signals, notably the rise in student loan defaults, make student lending market participants susceptible to increased regulatory scrutiny, and likely resulting spikes in follow-on private litigation as well....

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