College Credit: Repairing America’s Unhealthy Relationship with Student Debt
Sallie Mae, the largest private lender of student loans, recently announced that it will split into two entities. The first company will manage nearly all of Sallie Mae’s assets—$118.1 billion worth of federal loans and $31.6 billion worth of private loans—and the second will continue to lend to students. This development underscores a disquieting truth: Americans have a healthy attitude toward higher education but an unhealthy relationship with student debt. While household debt comes in many forms, only student debt grew during the Great Recession.