Remember the housing bubble? If the student loan bubble pops, the fallout could be even worse.
We all know how much havoc the housing bubble wreaked on our economy, but it turns out the growth of student loan debt was twice as steep as the growth of mortgages and revolving home equity from 1999 to the peak of the housing bubble in 2008. One thing is for sure: if mass numbers of students start defaulting, or if they stop spending on other things because their money is going to paying off loans, a day of reckoning is surely coming. The only question is when?
graph via The Atlantic
photo (cc) via Flickr user Anamorphic Mike