To you and to veen's point. We have a fuck-ton of student debt which is already largely not being paid. Okay. The economy tanks (globally - but what about in the US?) and suddenly you have even more recent graduates with no way of making payments and no end in sight. Defer the payments, be under-employed or not employed at all, and have years of not actually paying back those loans. Does that bubble then pop, too?Frankly, I think we're all fucked in weeks not months based on the frequency of oh-shit mumblings. Which means you'll be in college when the shit hits the fan.
Right? mk and I were discussing what the next bailout looks like when interest rates are already effectively zero. I think that depending on who's in office, a student loan debt jubilee (probably not total, but certainly partial) would probably be the easiest, most effective stimulus to pass. Most student loans are government-originated and even the private ones have a government component.
There won't be student loan forgiveness just don't see it. It would go against America capitalist values. Bankruptcy allowance maybe but forgiveness no. The next bailout is already happening you just missed the announcement. The current fed rate of 25 to 50 bps in a Negative rate environment is a stealth bank bailout. The fed is paying banks more than the maket rate to hold money and effectively subsidies the banks.