What happens to the economy when a large number of loan default?

I try to work around this problem in my head, but no luck so far. How does it work? If you take a loan and pay it back, the economy is making more money, but what happens when a large number of people? How to default on their loans … student loans or something? Would happen to something as like the subprime crisis? Aww shit, wrong category. Probably due posted this in the economy. OTL

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