QUESTION: Americans now hold close to $1.2 trillion in outstanding student loan debt making it the second largest form of consumer debt after home mortgages. What are the implications for housing markets, household formation, and economic mobility for the next generation? Are there creative approaches to reduce the burden?
The Subprime Education Crisis
By David A. Smith
Remember the subprime housing crisis? Now we have a subprime education crisis. This one is worse in two ways: asset-value recovery and a flawed governance model that is simply making the problem worse.