August 15, 2011
HIGHER EDUCATION BUBBLE UPDATE: Student Loan Debt Climbs. “Americans have cut back on credit of all kinds, with one notable exception. . . . Mortgage debt, home equity loans, credit card debt and auto loans are all down sharply — partly because people are being more careful, but also because many have defaulted. But student loans are up sharply. There was $550 billion in student debt outstanding in the second quarter, up 25% from $440 billion in the third quarter of 2008.” Well, you can’t really default on student loans.