"As more people default on their student loans, their credit ratings will drop, making it harder for them to access new credit and help grow the economy," he adds. "Even people who stay current on their student loans are dealing with very large debts, which reduces the money they have available to spend elsewhere. The stakeholders in the student lending industry have to take a hard look at the terms and repayment rules for student loans, and the industry may have to develop a new lending model to prevent a bad situation from getting completely out of hand." It's an uphill climb for an alarming number of college graduates. Worse, the student loan tsunami shows no sign of abating.