Some people get less from a degree than they put into it. But you can improve the odds of educational success by looking up a school’s default record on student loans.
It’s no shock that during the devastating economic downturn, a lot of people went from good credit to bad, as job losses and foreclosures took their toll. But here’s a surprise: According to FICO data, the number of people with excellent credit didn’t fall during the recession — it grew.
“Many people seem to think that everyone’s FICO score must be down these days. However scores have moved in both directions,” says Rachel Bell, senior director of global scoring solutions for FICO.
The television commercials promising college degrees or professional certificates fast are hard to miss. The smiling TV actors offer assurances of future economic security and success. But might these programs really be subprime mortgages disguised in academic regalia?
Schools like University of Phoenix, ITT Technical Institute and a host of others are part of the growing for-profit education sector that might the next industry to crash, burn and drag us all down with it, according to Steven Eisman, the investor famous for predicting the subprime mortgage crisis that set off the recession.
The glaring similarity between the subprime mortgage business and for-profit education is the issuance of loans to people who cannot repay them.
A few United Arab Emirates (UAE) banks are having a little problem collecting on the credit card balances of expats leaving town — to the tune of up to 2,500 cardholders a month.