If policymakers and employers to carefully deflate the bubble.

If this bubble burst, there is going to be a big mess,
resulting in a lot of personal debt and lack in consumer spending. Change will
have to be put in place by policymakers and employers to carefully deflate the
bubble.  Individual cost for a college
education keeps climbing higher and higher while Financial assistance has
declined by 26 percent from the mid 1990’s.  According to the article “The
student loan bubble threatens to burst” Rachel Connolly states that student loan debt in the US has shot up by over 170
percent in the past decade. This debt has grown primarily by a lending system
that is lending money to18-year-olds who have no financial knowledge, no credit
history and no reason to educate themselves on basic things like interest rates,
how the loan will get paid or the amount of time it will take to repay the
loan.  Yes, there are similarities to the housing bubble and the
current student loan system: both involve money easily lent to susceptible
borrowers to enable them to buy a product that is quickly increasing in price,
but with uncertain returns. The US economy is being substantially impacted by the
increase in student debt.  Presently default
rates for school loans are at an all-time high, higher than those of credit
cards, car notes and even mortgages all due to lenders collecting from students
regardless of salary.  Unfortunately, as
well as troubling, this is the only kind of debt for which this is the case.  As a result, young people like my son find themselves not being
able to afford to live on their own let alone buy a home, so they end up moving
back home with parent.   Even worse, the ripple effects this would have
on the economy should cause concern for all. 
Consumer spending will diminish the student loan bubble generation if more
than half their salary is going towards student loans which means houses, cars
etc. aren’t being purchased.  Unless the current condition is dealt with, the US will be
left with many young people crippled by a debt they are probably not going to
be able to pay back, which will result in a depleted economy.  Nonetheless, as long as young people believe that people
with degrees earn more money than without they will continue to pursue a
college education regardless of the risks associated with student loans