I keep hearing rumblings about the Student Loan Bubble being the next Housing Bubble... But what exactly does this mean in the real world?
Student Loans are primarily financed by our government already, very few students need private funding for loans. Also, Private student loans are backed by the US government, so a private loan freeze would prove highly unlikely.
In the housing market bubble, once banks and private loan companies stopped lending... The federal government stepped in and FHA loans became the standard.
What event will trigger the federal government to stop giving out loans to students for education? I know there are limits to federal loans.. and that seems to be the ceiling. But i don't see how a higher education bubble can burst in the same manner as the housing market.
What events would have to occur for a college education at say, Harvard to be discounted 50% from peak prices in 10 years? If Harvard and Yale are the FORTRESS homes... What would a Cal State college charge in a "bubble burst" scenario?
Will students graduating in 2012 with $100K in loans.. be griping in 10 years when 2022 college grads are graduating with half the debt load as them?
I keep hearing rumblings about the Student Loan Bubble being the next Housing Bubble... But what exactly does this mean in the real world?
Student Loans are primarily financed by our government already, very few students need private funding for loans. Also, Private student loans are backed by the US government, so a private loan freeze would prove highly unlikely.
In the housing market bubble, once banks and private loan companies stopped lending... The federal government stepped in and FHA loans became the standard.
What event will trigger the federal government to stop giving out loans to students for education? I know there are limits to federal loans.. and that seems to be the ceiling. But i don't see how a higher education bubble can burst in the same manner as the housing market.
What events would have to occur for a college education at say, Harvard to be discounted 50% from peak prices in 10 years? If Harvard and Yale are the FORTRESS homes... What would a Cal State college charge in a "bubble burst" scenario?
Will students graduating in 2012 with $100K in loans.. be griping in 10 years when 2022 college grads are graduating with half the debt load as them?
#housing