[jonhohle]

If you agree with Austrian economics, this follows the typical business cycle. Cheap money, inflated prices, credit contraction, bust.

In the last 5 years we've seen this happen at least three times:

  * housing
  * solar
  * equities

the insidious thing about student loans is that the borrower has little to no credit history and cannot default on the debt. A large portion of this money (40% iirc) is going to for profit institutions which have policies in place to keep a student enrolled (when any respected school would kick the the student out for low academic performance or issues of ethical conduct).

[Locke1689]

If you agree with Austrian economics,

Big if.

[gte910h]

That's' theory, not evidence.