### Comment:
Yup, and if there are defaults, the phony cheap credit used to inflate homeprices, which increases the money supply.  
  
 When the loans go bust, the phony credit is destroyed and it causes deflation in prices.

### REPLY:
Sally mae (gov loan program) owns 90% of all student debt. The 'evil bankers' people blame for the student debt is the goverment. Their handing loans out to anyone is what caused prices to go up for both school and homes. More 'free' money = people charge more. Easy com easy go.  
  
 And no. The credit was never destroyed. It was paid off by then goverment. The banks got their money. And the home owners lost their home and their credit was fucked. Money doesnt just go poof.

### END.