Student debt tripled in eight years
A new report from the New York Federal Reserve further confirms what many commentators have been long saying -- student debt is the bubble that just keeps expanding. Total student debt has nearly tripled in the past three years.
Total student debt stands at $966 billion as of the end of 2012, with a 70 percent increase in both the number of borrowers and the average balance per person. The overall number of borrowers past due on their student loan payments has also grown, from under 10 percent in 2004 to 17 percent in 2012.
Noting the NY Fed report, HuffPo pointed out that the proliferation of indebted students and their families has knock on effects on other areas of the economy:
Fewer people with student loans are buying homes, according to data in the report. Of borrowers ages 25 to 30 who are taking out new mortgages, the percentage of those with student debt has fallen by half, from nearly 9 percent in 2005 to just above 4 percent in 2012.
The fed report sees a connection, stating, "The higher burden of student loans and higher delinquencies may affect borrowers' access to other types of credit and the performance of other debt."