Are student loans the next bubble burst? Some say no because interest rates remain low and student loans are easy, but I’m just not sure...

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It’s hard to repo a useless degree...

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Anytime someone asks something stupid like this I immediately know they don’t know what a ‘bubble’ is. Are people you know frantically trying to buy student debt? Didn’t think so... not a bubble. Yields on student loans are basically the same they were 10 years ago

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Also there is the ease of restructuring and inability to discharge in bankruptcy

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Didn’t need the sass, RA1, and college tuition has skyrocketed over 200% over the past 10 years and I’m just trying to understand the economics behind it...

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Most of the money is owed to government agencies. So, worst case is a relatively small flare up at the banks and some more government debt? Am I missing something?

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20 years, not 10. Big difference

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As for 200% price increase- Colleges spotted the bottomless pools of money forming (lending institutions and federal programs) and thought- why not? Let's dip our hands in. Doesn't matter that the kids and their clueless parents get caught in the middle

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^ In an efficient market, shouldn’t the price of college increase until the present value of your cash flows is equal with or without the degree? If that’s the case, and we all agree that a good education still increases lifetime earnings substantially more than the cost of college, then shouldn’t tuition keep increasing?

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Also, where are you seeing the 200% increase over 10 years figure?

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Price Changes from Jan. 1997 - Dec. 2017

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^ it’s a business... they spotted an opportunity to increase earnings over a long period of time with limited blowback. What’s wrong with a business doing that? There are alternatives and the return on a lot of college degrees is still very attractive at these prices

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