It's almost like having an education system that's financed via credit at literally any price to any person aged 18 or older with zero oversight, qualifications, etc. leads to an unstable financing market or something. So strange, wonder why that might be.
"No way to prevent this" rings louder every day.
At this point I wonder what part of the system will fail first, the students or the banks.
The students most certainly. The banks, if they were capable of failing, would've done it by now. The fed just turns on the printer because they know damn well if they let the banks go down, the entire party goes crashing down with them.
Banks are rarely involved anymore. Most student loans nowadays are direct from the federal government.
Correct. And when banks or other private lenders make student loans now they usually require a co-signer, such as a parent, with a decent credit score and assets or income. So even if there's a high rate of defaults by borrowers the lenders are unlikely to take major losses.