88.8% of student loan debt is less than $50,000. While almost half of debt that is carried is under $10,000.
Is this really a bubble about to burst?
Because of the housing crisis bubble we tend to see bubbles in everything around us. We are quite aware and sensitive to the specifics of our economy like never before. Admittedly, such high levels of debt in this weak economy could push the student loan problem over the cliff. But at the moment, student debt is being paid back in a reasonable fashion.
This potential bubble is still just talk, today. But debt even in the best economy is risky. It's possible to acquire large amounts of debt and not be able to make your payments because of job loss, sickness, or other unforeseen incidents. It is much better to save for education costs ahead of time with a 529 plan. Going to a inexpensive school or working your way through school makes more sense. We take debt to lightly, it's to easy to acquire and your only a few steps from defaulting on it.
The following infographic courtesy of CreditSesame.com explains the facts and figures and where we could be head for in the future.