“hundreds of thousands to millions of students defaulting on their debt”:
From my understanding, this can’t really happen (in a way that causes financial issues for the lenders). As long as student loan holders have income, it can be garnished to pay off student loans. In addition, you can’t use bankruptcy to get out of them.
Because of this, it’s not really a bubble, since it can’t pop. It will just generally depress the country’s economy without causing any sudden crash.
“hundreds of thousands to millions of students defaulting on their debt”:
From my understanding, this can’t really happen (in a way that causes financial issues for the lenders). As long as student loan holders have income, it can be garnished to pay off student loans. In addition, you can’t use bankruptcy to get out of them.
Because of this, it’s not really a bubble, since it can’t pop. It will just generally depress the country’s economy without causing any sudden crash.
It could pop under political pressure to allow student loan forgiveness, and indeed I’ve heard plenty of people who want exactly that.