system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: The student loan debt crisis/bubble if there is one and if I should be worried

I hear a lot about how student loan debt is forming a huge bubble of loans that were given which can't be paid back. People keep comparing this to the mortgage bubble that caused the recession in 2008.  

As a college CompSci student right now, is this something to worry about?
gpt
A large portion of a generation are accumulating large amounts of debt that are comparable to mortgages. This is due to federally backed loans, meaning most people who want to go to school can get a loan and go.

This in turn creates a higher demand for education which then increases the price of said education over the years. Also, this creates a saturated job market. The degree which you took the loan out for is no longer a guarantee to get you your preferred job because there are others like you that did the same thing. This has two effects; the first is that there are a lot of people that are now under-employed, and the second is that the person who got the job they wanted is getting a lower wage than the profession used to pay as the business hiring employees has many options from the high demand.

Now what you are left with are underemployed or unemployed people with an expensive degree which they now have no use for, and people who are using their degree, but still can't make enough to live a normal life. These people either delay or forego purchasing homes, getting married, starting families, buy the new hot gadgett, etc...

It's not so much a bubble as they cannot get rid of the loans. They are with them for life if they can't pay them off. But imagine what this would do to the economy when you have this generation that can't consume as the previous generations did. It can potentially become stagnant as a large portion of their money goes towards paying off their loans and are also having fewer kids to help bolster the next generation.

It's a bad situation.