Student Loans Are Unsustainable

Graduates And Jobs

Paul Campos suspects that the student debt bubble will prove worse than the housing bubble:

In effect, the system allows any 22-year-old American University chooses to admit to borrow a sum equal to the average home mortgage, but without a single one of the actuarial controls that are supposed to minimize the risk that homeowners will borrow too much money.

(Chart from (pdf) “Why Are Recent College Graduates Underemployed?”)