This debt bubble is no different from the causes of the housing bubble in 2007 - government policies and money (and Federal Reserve low interest rates) pushing money stupidly to people who should not go to college and should not have the money.
When this bubble pops, the amount of fraud revealed will be shocking.
The number of people in college who “shouldn’t be there” is at least 50% of them, probably closer to 75%.
Were it not for the dumb loans guaranteed by the dumber government (AKA You and Me), the national debt burden would be much less.
I hate to do this as it shows my age but when I was considering college in 63, I was choosing between a local college and one out of state. My parents pointed out to me they could afford a local, commuter school, but if I chose one away, they would pay tuition and the rest was on me. Easy choice, I went local, worked part time, and actually left school with money in bank. Full load yearly tuition and fees was about $1500.
Same school today, tuition and fees(without resident fee) is 40K per year and the average debt owed on grad is about 40K. An interesting comparison: my first job out of college paid 10K or 8 times a years tuition. Same school today, average starting pay is about 45K, or about 1 to 1. No wonder they are living in their parent’s basements and or not paying their debts.
And the gov. that will forgive the entire remaining debt if the accepted applicant works for the gov. or secular non-profit and educational work for 10 years, and makes all the required 120 payments. No wonder such abound with liberals