Here’s a thought-provoking article about how the current student-loan bubble resembles the build up to last decade’s housing bubble — complete with absurdly easy credit, low lending standards, government-backed loans, and large private lenders all too ready to push the risk envelope because they know they won’t be held responsible.
More than likely, it probably won’t — or can’t — end the same way the housing market did, i.e. a total collapse of market demand and prices, sparked and intensified by a faltering overall economy. But the combination of easy credit and escalating prices of higher education is eerily similar to last decade’s run up to the housing debacle. Who knows how it will end?
File under: De ja vu all over again.