My question was, what is the macro impact of them defaulting on student loans.
Seems like based on your point, everyone would be better off because PPP would go up slightly. I'm not sure I agree, but only because I am not sure of the impact massive student loan default would have on capital markets for debt holders.
Basically would mean that Sallie Mae could tank significantly.
> My question was, what is the macro impact of them defaulting on student loans.
My mistake, I thought your question was more about the impact of student loan debt as a whole on the economy going forward.
My point was that there's probably no bubble (unless at some future point the govt decides student loan debt is dischargeable in bankruptcy), but that doesn't mean it won't be detrimental nonetheless.
> Seems like based on your point, everyone would be better off because PPP would go up slightly.
How do you figure? I haven't seen the data myself but it would be shocking if total accrued student loan debt (adjusting for inflation of course) doesn't skew heavily towards the 18-30 age range.
That leaves the older generation with significantly more purchasing power, and if the younger generations avoid student loan debt it benefits them as well.
> Basically would mean that Sallie Mae could tank significantly.
I think that's a very real scenario that will play out in another decade or two. I very much doubt today's toddlers will accrue as much student loan debt as millenials have.
Seems like based on your point, everyone would be better off because PPP would go up slightly. I'm not sure I agree, but only because I am not sure of the impact massive student loan default would have on capital markets for debt holders.
Basically would mean that Sallie Mae could tank significantly.