Posted 8/31/2023, 4:37:17 PM

Here's why some economists are concerned student loans may cause the next big bubble

The ballooning student loan debt in the US and the market of student loan asset-backed securities (SLABS) are raising concerns among experts, with some fearing that SLABS could pose a similar systematic risk to the economy as subprime mortgage-backed securities did in 2008. While some experts worry about the affordability issue and the potential struggles faced by borrowers, others believe that the SLABS market is smaller and less likely to trigger a financial crisis.

cnbc.com

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