It cost more than you thought you could afford to pay, but they gave you the loan anyway. They said it was a good idea – a good investment. In fact, since the government was backing it up, it’s hard to see the down side in just walking away from the payments. And you certainly know plenty of people who’ve done just that, with no consequences whatsoever. Now that you know that you bought an extremely overpriced lemon, walking away looks like the smart move.
The mortgage lending crisis? Noooooooo! It’s the Higher Ed Bubble, and it’s going to pop.
This bubble, like all bubbles, will have its tragic stories, so I don’t want to cheer this on. But if there’s a silver lining, it’s that it may make people rethink the value of those four years that polite society assumes you need.