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Could just be a reporting artifact, a delay in the numbers arriving.
I think fewer people are choosing to go to college.
The loan amount outstanding is dropping not because people are paying them off, but because Biden has been forgiving billions upon billions of dollars of loans.
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Consdiering this is a forum full of people who claimed to spot the housing bubble before it burst, why is anyone not talking about the student loan bubble? Trust me, when it burst, it is going to be VERY ugly. You have thousands, if not millions, of bororwers out there whoa re going to default. It's just a matter of time.
Peter Thiel's College Bubble Theory Gains Few Believers
NEW YORK -- The average college graduate leaves school with $24,000 in debt and one in 10 are unable to find work of any kind. Recently, student loan debt exceeded credit card debt.
Much like the housing bubble, when home buyers took on outsized mortgages they were either lured into or which they knew they could ill afford, all in the service of realizing the American Dream of homeownership, students today are struggling with piles of educational debt assumed in service of a similar goal -- the American Dream of a college education.
According to the College Board, 70 years ago there were 1.5 million students enrolled at American universities. By 2006, that figure had swelled to more than 20 million. Meanwhile, the cost of tuition has grown steadily higher. Over the past 25 years, college tuition and fees have risen three times as fast as individual family income. And over the past decade, tuition has increased at a rate of 5.6 percent per year beyond the rate of general inflation.
Recently, with tuition costs rising and debt levels increasing, the skepticism has reached a boiling point.
Amid this backdrop, a Silicon Valley-based venture capitalist named Peter Thiel has inserted himself in a debate about whether a college bubble exists.
Namely, Thiel believes that a lack of innovation will result in long-term economic stagnation. He also argues that the housing bubble, which inflated the real estate market and sent prices soaring and finally crashing back to Earth, now threatens to dismantle higher education.
“A true bubble is when something is overvalued and intensely believed,†explained Thiel during a recent interview with TechCrunch. “Education may be the only thing people still believe in in the United States. To question education is really dangerous. It is the absolute taboo. It’s like telling the world there’s no Santa Claus.â€
Thiel’s slant has infuriated some, and emboldened others. But is he right?
http://www.huffingtonpost.com/2011/05/03/college-bubble-burst_n_857082.html
#housing