Student Loans are an Economic Concern, but Unlikely to Cause a Recession - ION Tuition

Some economists are comparing the Great Recession of subprime mortgages to the growing student loan debt. The relaxed lending practices of mortgage lenders caused home prices to skyrocket, resulting in home buyers borrowing more money and becoming unable to pay their mortgages. Similarly, expanded student loan lending has caused college costs to skyrocket. In-state tuition has grown 243 percent in the past 20 years. Like the mortgage crisis, students are taking on more debt than they are prepared to repay. Over 1 million people default on their student loans each year, and 40 percent of student loan borrowers are expected to default in the next 5 years. https://www.iontuition.com/student-loans-cause-economic-recession/