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Jay Bowen of the Foundation for Economic Education argues that it’s only a matter of time before massive defaults of federal student loans start occurring in the United States:

The meteoric rise in tuition costs is partly due to more students receiving blind encouragement to borrow large sums of money for school. With the government spigot open wide, universities have realized that as much as they charge, the students will be able to borrow that and more. This has led to large college bureaucracies that are inefficient.

Student debt of this magnitude can have important social consequences. Recent graduates, struggling to pay off their loans, may delay buying a house or getting married. Before the student loan bubble bursts and taxpayers are on the hook for billions, the government needs to quit overspending and exit the lending market.