Seven million people haven't made a single student loan payment in at least a year [1] and the overall delinquency rate of loans in repayment is about 30% [2].

Seven million people haven't made a single student loan payment in at least a year [1] and the overall delinquency rate of loans in repayment is about 30% [2]. With the figure of student loans held by the Federal government going up exponentially as of 2008 [3] (and with tuitions soaring by 6% a year) the chart certainly looks "bubbly". Investor Bill Ackman believes there will likely be some form of forgiveness as there is "no way students are going to pay it back": When asked if he was concerned about bubbles forming in debt markets as central banks around the world continue to keep interest rates near zero, Ackman cited student loans as his biggest concern. “If you think about the trillion dollars of student loans we have outstanding, there’s no way students are going to pay it back,” Ackman said. He foresees a future where debt-laden students protest government officials, leading to some form of forgiveness. [4] [1] http://www.wsj.com/articles/about-7-million-americans-havent-paid-federal-student-loans-in-at-least-a-year-1440175645 http://www.wsj.com/articles/about-7-million-americans-havent... [2] https://www.stlouisfed.org/on-the-economy/2015/april/delinquent-student-loan-borrowers-are-getting-further-behind https://www.stlouisfed.org/on-the-economy/2015/april/delinqu... [3] http://www.bloombergview.com/articles/2015-04-17/washington-may-not-want-to-get-out-of-student-debt http://www.bloombergview.com/articles/2015-04-17/washington-... [4] http://www.forbes.com/sites/antoinegara/2015/04/13/bill-ackman-herbalife-criminal-lawyers-student-loans-bubble/ http://www.forbes.com/sites/antoinegara/2015/04/13/bill-ackm...