The reason why this crash will not be televised has to do with the fact that student loans cannot be discharged in an ordinary bankruptcy. This feature of law will act to hide the enormity of the economic problem by making it a private matter of individual loan holders.
College graduates leaving school with degrees that are worth less than what they paid for them will carry a huge financial burden for the rest of their lives; they won’t be buying new cars or homes, not with tens of thousands of student loans on their backs. (Thought this demand effect could be masked if the insourced workers will be spending instead.) They will be, rather, living hand-to-mouth on menial job wages, or be forced to move back in with their parents.
The Pew Research Center reports that in 2009 16.7% or 51 million Americans lived in multigenerational households. “The sharpest growth was among adults ages 25 to 34, 8.7 million of whom lived in multigenerational households in 2009, compared with 7.4 million in 2007.” While boomerang kids may be returning home in droves thanks to the lackluster economy, the phenomenon began well before the downturn. The Boston Globe wrote as early as 2005 in the article "Believe It or Not, Moving Back Home Is Now In": 65% of college graduates expect to return home.
Add to this the possible doubling of student loan interest rates coming July 1 this year and you can imagine the enormity of the looming problem.
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