Student Loan Bubble is a resource for students, parents, former students, policymakers, and the media to learn more about the Student Loan Bubble. Our URL is studentloanbubble.com.

The student loan bubble is the product of decades of inexpensive loans that were made available for the purpose of purchasing post-secondary education in the United States. The widespread availability of cheap credit drove college prices up, which increased at a rate that vastly outpaced inflation, resulting in students borrowing increasingly large amounts to pay for school, year over year.

Over the course of several years, the variable rates for student loans have fluctuated, sometimes reaching double-digit annual rates. Students who have borrowed tens of thousands of dollars – perhaps more than $100,000 – are having trouble meeting loan repayment schedules this early in their careers.

Similar to the sub-prime lending crisis, financiers have speculated on the ability of students to repay debts, without having any evidence to justify this speculation. In previous generations, individuals would acquire similar debt levels to purchase a major asset, such as a house, after they had a stable career and could prove their ability to pay the loan back. On a standard financial balance sheet, these individuals would have a home asset that nearly equaled the amount of debt they acquired through their home mortgage.

The student loan bubble is unique because students have been left with serious debt and no asset to balance it. Without collateral to offset their debts, students are unable to acquire new loans for major purchases, such as automobiles and houses. With payment schedules that ensure their indebtedness well into middle age, these students have a significant financial burden for decades to come.

The true nature of the student loan bubble is yet to be understood, but it is already clear that its consequences will not merely be financial in nature, and will involve social dimensions as well.

Student Loan Bubble is dedicated to covering this crisis as it evolves, and will provide news, analysis, strategies, and a forum for discussing this topic. The goal of Student Loan Bubble is to create a valuable resource that will improve the lives of students whose futures have been affected by the student loan bubble.