Business: Student-Loan Mess

Enrique Ponce, a construction laborer from El Puente, Calif., and Michael Ward, a resident physician at the University of California Hospital in Los Angeles, exemplify two reasons that a federal program to guarantee loans to needy students is in deep trouble. Ponce borrowed $1,500 from a trade school that offered to teach him to become a TV repairman, but dropped out after two weeks because he found the courses too difficult. The school by then had already sold the loan to a credit union, which is now trying to collect the $1,500 from the...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!