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Comment: Re:What is flipped? (Score 2) 768

by Bahamuto (#37889642) Attached to: Student Loans In America: the Next Big Credit Bubble

I don't know if flipping is criteria of a bubble. A bubble just means that there is inflated value of something. If the colleges raise the rate at which they charge students to a degree where it doesn't make sense to go to school there, (but they go anyway because of promise of a good job) there will be a massive amount of defaults.

    Now these defaults are more or less guaranteed, which eases the problem. I believe the only cause where the default actual is when the student dies. So if the loans ever amount to more then what the student can payback in their lifetime, then there will be an issue.

    Unless of course the banks aren't getting the money fast enough...

A penny saved is a penny to squander. -- Ambrose Bierce

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