Federal student loan defaults are on the rise

Ever since the housing bubble burst back in 2007-2008, there has been speculation about which bubble (if any) will burst next. The most likely "asset" due for a "correction" is probably student debt. Especially since it's been "pooled and repackaged into student loan asset-backed securities" (similar to the "notorious" mortgage-backed securities): 
https://www.commondreams.org/views/2017/12/28/student-debt-slavery-bankrolling-financiers-backs-young
"All of this has made student debt a very attractive asset for investors. Student loans are pooled and repackaged into student loan asset-backed securities (SLABS), similar to the notorious mortgage-backed securities through which home buyers were caught in a massive debt trap in 2008-09. The nameless, faceless investors want their payments when due, and the strict terms of the loans make it more profitable to force a default than to negotiate terms the borrower can actually meet. About 80% of SLABS are backed by government-insured loans, guaranteeing that the investors will get paid even if the borrower defaults. The onerous federal bankruptcy laws also make SLABS particularly safe and desirable investments."

As mentioned above, "SLABS are backed by government-insured loans", thus, this particular bubble doesn't appear to be worrying Wall Street since it would affect us taxpayers & the student borrowers. The word "bubble" has even been used to describe student-debt by "Goldman Sachs", but of course they claim it doesn't pose a systematic threat (for them) because (again) the debt is fully guaranteed by us taxpayers: 

www.rollingstone.com/politics/features/taibbi-on-new-student-loan-debacle-and-trumps-campaign-con-w513929%2Brolling+stone+student+bubble+debt&hl=en&gbv=2&ct=clnk

Even Goldman Sachs described the $1.3 trillion in outstanding student loan debt as a "bubble" in a research paper earlier this month. But, as the bank cheerily reminded readers, this particular bubble doesn't pose a systemic threat, because most of the debt is fully guaranteed by the U.S. government.

The bank noted that an astonishing 10 percent of all student borrowers are currently at least 90 days behind on their debt, compared to just 1.2 percent of mortgage holders. It's the highest delinquency rate among any form of consumer credit."

"In any case, all of this represents the ultimate perfect storm of bad incentives. Schools get to keep raising tuition, kids are still basically forced to go to college, and the trillion-dollar lump of pain waiting to be released onto the world sits mainly on the shoulders of the taxpayer, and/or ex-students struggling in a tighter workplace."

And despite all the overwhelming disadvantages for the borrower if he or she defaults, i.e."strict terms of the loans" & "onerous federal bankruptcy laws", approximately 4.6 million Americans have defaulted on federal student loans & this is in a "great" economy ("great" economy according to Trump). I wonder what would happen if we had another recession:   

http://www.businessinsider.com/student-loan-default-puts-economy-at-risk-2017-12

"Approximately 4.6 million Americans have defaulted on federal student loans, according to The Wall Street Journal.

This figure includes an increase of 274,000 people over the last three months. At the end of the third quarter of the fiscal year, these nearly 5 million defaulters represent 22% of all Americans who were required to pay federal student loans."