This is not quite the beginning of another 2008-like financial crisis ensuing.
Student loan volume is a mere sliver of what mortgage lending is.
Alas, there are potential critical long-term implications. By 2014, 15% of 2012 grads are estimated to will walk away from their student loans, nearly twice the rate for 2009 grads.
Because of deferrals, delinquencies or forbearance; only 40% of all loans are currently being repaid.
With current joblessness for 20- to 24-year-olds around 14%; and 9% for college graduates this will only get worse.
Current loan volume of student loans is current on the upswing. 10% in 2012, adding $100 billion to the $1 trillion to the total student loans that are currently outstanding.
Skyrocketing tuition costs are one reason in spite of the economic downturn. They have doubled since 2000, far outpacing inflation (yet another surprise).
Plus enrollments are up, as laid-off workers head back to classrooms and more college graduates, put off by the lousy job market, seek advanced degrees. Unfortunately this wll not be the cure-all for people in their 50’s.