Bankers: College debt bubble mimics housing bubble
A group of bankers have just dumped two more problems on the Federal Reserve’s plate. The Federal Advisory Council, made up of 12 bankers who meet quarterly to advise the central bank, warned that farmland prices are inflating “a bubble” and growth in student-loan debt has “parallels to the housing crisis,” which was the primary cause of the Great Recession in the U.S… As for student loans, recent growth has pushed debt levels to nearly $1 trillion, meaning it “now exceeds credit-card outstandings and has parallels to the housing crisis,” the council said after its Feb. 3, 2012, meeting.
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by Meghan Foley, USA Today.