Here's why some economists are concerned student loans may cause the next big bubble
Publishing timestamp: 2023-08-31 12:46:04
Summary
The article discusses concerns surrounding the student loan asset-backed securities (SLABS) market in the U.S. Experts worry that the ballooning student loan debt could pose systematic risks to the economy, similar to the subprime mortgage-backed securities that contributed to the 2008 crash. However, not all experts agree, with some believing that the SLABS market is smaller and poses less systemic risk. The article highlights the affordability issue and the potential struggles that student loan borrowers may face when federal loan payments resume.
Sentiment: MIXED
Keywords: students, navient corp, mortgage-backed securities, st louis, united states, goldman sachs group inc, bank of america corp, slm corp, recessions and depressions, mortgage financing, financial crisis, sec, personal debt, consumer financial protection bureau, student loans, video first, asset-backed securities, covid-19 pandemic, auto loans, wall street, mortgages, business news,
Source: https://www.cnbc.com/2023/08/31/why-student-loans-may-be-the-next-bubble.html