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college-loans

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This is the time of year when high school seniors apply to college, and when I get lots of mail about whether college is worth the cost. The answer is unequivocally yes, but with one big qualification.

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"The increase in the amount of defaulted loans among poor students comes as President Barack Obama says he wants to expand access to college for working-class families and increase funding for the Perkins program," Bloomberg reports.

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Banks gave money to needy college students without considering whether borrowers could repay, then bundled and resold the loans to avoid losing money when students defaulted -- lending practices that mirror the run-up to the subprime mortgage crisis.

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