The student-debt bubble fueled by the housing bubble

Home prices in San Francisco have plunged amid rising interest rates and, while not necessarily reflective of the whole nation, it isn’t surprising.

  • Easy money and excessively supportive government policy during the pandemic helped fueled a surge in housing prices nationwide.

Perhaps the biggest issue comes from Obama’s income-based student-loan repayment plans, which capped monthly payments at 10% of discretionary income.

  • That means borrowers aren’t paying off their debts and are then rolling themselves into more debt by buying a home.
  • Credit scores of home buyers have generally increased since the 2000 bubble years, but have borrowers become more credit-worthy?

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