[kdragon]

I get your point at least. While one could argue that student loans are in a speculative bubble (in regards to their actual value), existing bankruptcy laws prevent the bubble from bursting.

Part of the collateral for student loans is, technically, your economic freedom. It's easier for banks to assume you will pay the principal of your debts, when government is the acting collection agency. It's very difficult to escape garnished wages.

However, if something changes and people have a way to shed their student loan debts, I think the bubble will pop very quickly.