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Is the College Debt Bubble Starting to Crack? | Wall St. Cheat Sheet

A financial bubble is where a rapid expansion in a particular market or asset is followed by a steep contraction. Prices often rise far above where they should be, considering fundamentals or intrinsic value. The aftershocks of the housing bubble still plague many Americans, but an even bigger bubble is raising red flags.

The skyrocketing price of a college education is causing an epidemic with student loans as more people rack up unsustainable amounts of debt to further their education. These loans are often bundled together and sold in a bond offering. While the appetite for risky assets is strong as the Federal Reserve punishes savers with low interest rates, investors are not willing to take a chance on some bonds backed by student loans.

Read the Rest @ Is the College Debt Bubble Starting to Crack? | Wall St. Cheat Sheet.

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