Student Loans A Lot Like The Subprime Mortgage Debacle, Watchdog Says - From NPR

While I do believe that comments about “the next thing to blow up the economy” are undue, the amount of student debt and it’s rate of growth are unsustainable for long.

“Michael McPherson is an economist and former college president who studies higher education financing. “I think of a crisis as being a situation which is getting rapidly worse,” he says. That’s not what’s happening with student loans, McPherson says.”

It could be a slow burning crisis, where there isn’t an entire implosion of the aggregate demand due to the tightening credit cycle, but rather a sustained lower level of demand decreasing the real growth rate over a prolonged period of time.