[closetCS]

I don't see this here, but could a student debt bubble result not in a wave of defaults but as a contributing factor in a market slowdown or recession because the average borrower will have less disposable income to spend on other goods and products due to the insane debt payments? A wave of defaults most likely won't hurt any major institution except the federal government, but the lack of consumer spending seems like a potential problem for our consumeristic economy.

[beefalo]

I've had similar conclusions when considdering this as well. These loans are not wiped out by bankruptcy so they will be a permanent drain to personal wealth indefinitely. I think we will see lasting effects as more and more young people are unable to invest, save for retirement, and buy real estate but there won't be a sudden shock to the economy like the mortgage bubble.

[closetCS]

I think we are seeing this drain already occuring actually. The popular news sources are all reporting that millenials are struggling to buy homes and build savings, though this may be due to low wages rather than debt servicing costs