Like the mortgage market in the lead-up to the financial crisis, the for-profit college industry may be experiencing misaligned incentives, according to the Consumer Financial Protection Bureau. This week, the CFPB filed a lawsuit against ITT Educational Services Inc., accusing the Indiana-based for-profit college chain of predatory student lending.

In some cases, according to the CFPB, students did not even realize they had a private student loan until they started getting collection calls. For borrowers with credit scores under 600, the costs of the private student loans included 10 percent origination fees and interest rates as high as 16.25 percent, the lawsuit alleges.

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