[Rimpinths]

It's an asset from the point of view of the bank or institution that made the loan. And they can transfer those assets from one investor to another. And the value of those assets can be based on unrealistic expectations about future default rates, so in that sense, student loans certainly can be a "bubble".

The real damage done to the economy by the mortgage bubble wasn't all of the people who lost money on homes when prices collapse. The most damage was due to the effect it had on banks' balance sheets when their assets (the value of debt-backed securities) lost value, which meant they had to call loans and restrict credit to make up for the difference. In that sense, a bursting of the student loan "bubble" could also have damaging effects on the economy.