In the same sense that the mortgage industry was a bubble. For mortgages, the investor lent money to home buyers and expected a long-term payment schedule. The

In the same sense that the mortgage industry was a bubble. For mortgages, the investor lent money to home buyers and expected a long-term payment schedule. The houses were being bid up. If you assume student loans are a bubble: the long-term earnings potential of students is being bid up (and will collapse, leaving the government with lower worth/worthless assets.)