5 Reasons the Student Loan Crisis is Nothing Like the Mortgage Crisis

Ever since the Consumer Financial Protection Bureau declared that student debt had crossed the $1 Trillion mark, there has been an endless stream of

headlines declaring this the next big crisis in the US.  With the US and many other countries still reeling from the 2008 crisis this has many people asking if this is the next mortgage crisis.

Here are 5 reasons why its not even close:

1. The size of the market is much, much smaller.

2. The private loan market is an even smaller percentage of that.

3. False assumptions are not feeding the crisis.

4. You can't get out of your student loans by declaring bankruptcy.

5. People see this one coming.

While this is certainly a crisis for anyone looking wanting a higher education, it's also a problem for investors.  If the level of student debt continues to grow at its current rate, it could become a significant economic drag, as the younger generations delay purchases that would have otherwise fed economic growth.

Source: http://www.forbes.com/sites/marcprosser/2012/08/22/student-loan-crisis/