And the private drama these loans manage for many household, advantages alert of possibility big damage to the brand new You.S. discount if swells from moms and dad borrowers default. Betsy Mayotte, chairman of Institute from Education loan Advisors, likens the issue into the 2008 home loan drama, whenever large numbers of brand new-domestic borrowers mistakenly assumed one, when the a lender told you they qualified for the loan, one to intended they may afford to pay off the debt. When large numbers of property owners then defaulted, the country try plunged into the worst economic downturn once the High Depression. (more…)