The theme is catching on with other bloggers and in the mainstream media. Today Instapundit's Glenn Reynolds writes an op-ed in the Washington Examiner, citing recent stories in the Washington Post and New York Times:
First -- as with the housing bubble -- cheap and readily available credit has let people borrow to finance education. They're willing to do so because of (1) consumer ignorance, as students (and, often, their parents) don't fully grasp just how harsh the impact of student loan payments will be after graduation; and (2) a belief that, whatever the cost, a college education is a necessary ticket to future prosperity.
Bubbles burst when there are no longer enough excessively optimistic and ignorant folks to fuel them. And there are signs that this is beginning to happen already.
On the other hand, if you can get a fixed-rate student loan, maybe you'll get lucky with a dollar collapse in a few years. That's my strategy for real estate debt, and it would apply to college debt as well. But if we're wrong and don't get a dollar collapse, college debtors are far worse off than mortgage debtors. You can walk away from a house and go bankrupt to clear other debts, but college debt is bankruptcy-proof and will be a ball and chain until your dying day.