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Many are predicting that student loans are going the way of the sub-prime housing market. People are concerned that the economy cannot generate the necessary amount of jobs or income levels to help students manage their educational debt.

Higher education is fraught with issues, some say, and a subset believes that it borders on a scam.

In 2009, the average college senior held $24,000 in outstanding student loans upon graduation, according to the Project on Student Debt. Student loans blew past credit cards in August 2010 as the largest single source of debt in the country.

This financing is nearing $1 trillion but no one considers it a bad investment. The near-universal belief that a university degree is good has enabled the expansion of the higher education bubble.

The price of U.S. college tuition has increased more than 900 percent since 1978. This represents 650 points over inflation. As a yardstick, housing prices increased just 50 points over the CPI during that time.

College applicants may still believe in the value of education but wages offered by employers have declined or leveled. Since the recession, unemployment for college graduates has nearly doubled.

These young adults are the most indebted generation in our history. They cannot secure dependable jobs needed to get out of debt and cash advances are not able to provide relief. Yet, lenders still award this population huge financing for educational purposes.

When the housing bubble expanded, they received protection by repackaging risky loans into mortgage-backed securities.

The education sector has an equivalent product called the Student Loan Asset-Backed Security (SLABS). Trading in securities backed by auto loans, home equity, and credit cards has declined at least 50 percent.

However, SLABS continue to be safe investments and federal guarantees provide lenders additional peace of mind. The student loan monster should continue to grow.