There is no bubble, in the traditional sense. There’s no instability to the business. Nothing’s going to collapse. If borrowers find out that their expensive degrees are worthless, if they find that they can’t get jobs that cover the loan payments, then Sallie Mae won’t be the loser. The borrowers will lose, the taxpayer will lose, but Sallie Mae, with its bankruptcy-proof loans, will rake in the cash. And it’ll rake in additional cash from the collections process. As far as Sallie Mae goes, this is bubble-proof.
