I'm not sure what you mean by "throw up" but my prediction is that a large portion of these education loans will end up being forgiven. It's housing bubble 2.0 and there's just no other way around it -- millennials leveraged up after being told for years that college was the path to prosperity and simply haven't seen the prosperity. The default rate on student loans is way up because, by and large, we're not making as much money, are less likely to have a job, aren't forming households and have massive debt/income ratios in comparison to our parents generation. If the government doesn't bail us out, the pyramid scheme implodes.

Of course, it's a terrible message to send and creates a moral hazard, but that's the way the game has been played for the last 30+ years. Your best bet to make it in America is to leverage yourself to the hilt. If you succeed, the benefits are privatized and you can sail off into the sunset. If you fail, the losses are eaten by the public.

In 2007 it was the bankers, mortgage lenders, GSEs and insurance companies working together to line each others pockets. This time around its the same deal, with (in order), the bankers, student loan originators (i.e. the government), Sallie Mae and the universities. Why would things play out any differently this time around?