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Student Loan Bubble: Fact or Fiction?
Monday, May 11, 2015 6:20 AM

Discover the Answer at the Southwest Lending Conference

Southwest Lending ConferenceStudent loans have now surpassed credit cards as the second largest form of consumer debt behind home mortgages; and in 2013, the CFPB released findings on the student loan market, revealing that the total outstanding U.S. student loan debt is approximately $1.2 trillion with federally backed student loans making up more than $1 trillion of it.

At next week's Southwest Lending Conference, May 18–20 at the Hilton Dallas Southlake Town Square, Phillip Wambsganss from the Higher Education Servicing Corporation will give an insightful look at the student loan bubble—fact or fiction—and what lenders should do.

Wambsganss is the associate executive director for Higher Education Servicing Corporation (HESC) located in Arlington, Texas. HESC is a private, nonprofit organization that serves as the in-house administrator and student loan servicer for the North Texas Higher Education Authority, Inc. (NTHEA). Mr. Wambsganss oversees all marketing, outreach, and industry relations for HESC and NTHEA. 

It's no secret that many students and graduates find it difficult to find good paying jobs or careers while burdened with trying to pay off their student loans. Wambsganss says that today the average education loan borrower owes more than $28,000 in student loans, while the portion of Americans age 25-34 who are working is only around 75 percent.

As reported by Hadley Malcolm with USA Today in May 19, 2014, "Seniors who graduate … are poised to be yet another product of a depressing economic cycle that isn't their fault but that they may never fully recover from. They and other recent graduating classes entered college and subsequently the labor market amid a panoply of converging circumstances that will inevitably set them back: rising tuition, their parents' decreasing ability to pay that tuition, fewer jobs after graduation, and lower wages for the jobs that are available."

The natural conclusion is that student loans are going to "hit the fan" in similar fashion to the subprime mortgage crisis of 2007-2010. Many fear that student loans may be the next bubble to burst. During Wambsganss' session, participants will look at the following questions:

  1. What are student loans?
  2. How much are students borrowing?
  3. Why are students borrowing so much?
  4. Can students afford the loans?
  5. How do student loans perform?
  6. Who defaults and why?
  7. Are student loans still a good investment for borrowers and lenders?

This jam-packed conference features the most current news and information on lending, including best practice panels, and plenty of opportunities for networking. 

More information and registration.

If you have any questions regarding this conference, please contact Corina Balsells at 800-442-5762, ext. 6642, or cbalsells@cornerstoneleague.coop.