Well, that is demonstrably untrue. 50k cars are sold all the time in huge quantities and the loans are held by copmanies that charge real interest rates. So, that is false. 700k condos are sold all the time in huge quantities and the loans are held by copmanies that charge real interest rates. So, that is false. The only difference between the above and expensive universities is that the interest payments are deffered until graduation. After which you are paying that back, you cannot even declare bankruptsy to get it absolved. Sure, the interest rates are cheap now, and probably artificially so. Sure, if interest rates went up to 10% maybe 50% of people would defualt on their loans. But the reality is actually this: * The market CLEARLY wants all this stuff and will go into debt to finance all the things they want. ESPECIALLY if they are expensive. Hell, people go into debt for cheap things all the time, cheque cashing places exist because people are dumb. * We have just had people largely uneployed or low on employment for more than a year. The amount of elasticity in the personal financial of individuals is far far far greater than we ever thought. We used to think if people had to stay at home for a year everything crashes. Nope, not true. * We also learned that if you keep people home for a year largely unemployed that the demand would go away and the economy would die. Nope, not true at all. Everyone is dying to find employees because demand is so high. Everything this post is talking about is bullshit. Yeah, it's cheap to borrow 600k for a degree, but not after you graduate. People are totally happy to borrow and get in debt.