conversation: User (PropRandy): "If so, what events would lead to it? \n\nIf not, will tuition costs continue to rise indefinitely?"
  Self: "In my opinion, no.  \n\nAt the height of the mortgage crisis there was approximately $800 billion in seriously delinquent mortgage debt.  As of December 2011 the amount of seriously delinquent student loans was approximately $95 billion.\n\nThe amount of delinquent debt would need to increase by at least 500% before there were actual economic problems.  The only way for that to happen would be for approximately half of the population with student loan debt to simultaneous say "fuck it, I'm not paying this."  \n\nAnd then in that case it would be the government absorbing most of those losses, not the private sector.\n\nEventually I believe that parents will start discouraging their children from attending expensive colleges, enrollments will drop, and tuition prices will level off across the board.  I don't see a circumstance where there could be serious financial damage as a direct result of student loan debt.  Indirectly, massive economic damage."
  saivode (saivode): "&gt; At the height of the mortgage crisis there was approximately $800 billion in seriously delinquent mortgage debt. As of December 2011 the amount of seriously delinquent student loans was approximately $95 billion.\n\nYou forget to take into account the total amount of each type of debt. There is [$13 Trillion](http://www.federalreserve.gov/econresdata/releases/mortoutstand/current.htm) in US Mortgage debt and about [$1 trillion](http://www.forbes.com/sites/halahtouryalai/2014/02/21/1-trillion-student-loan-problem-keeps-getting-worse/) in student debt. So the $95 billion in seriously delinquent student loans is proportionally worse than the $800 billion in seriously delinquent mortgage debt."
  notpaulrudd (notpaulrudd): "Proportionally worse, sure. What if the numbers were $1 billion total, with 100% delinquent, $1 billion. Does that make it more prime to cause an economic crash because it's proportionally worse? "
  saivode (saivode): "No, but you wouldn't see anyone lending money for student loans either. That would likely result in the higher education finance bubble to burst, which was what OP was asking about. I'm not sure why everyone is jumping to full blown financial crisis."
  