Student Loans Worry Students, Families, and the Fed

Student Loan (Graphic)

Student loans have received considerable media attention in recent months as researchers and policymakers voice growing concern about the heavy debt loads assumed by students and their parents. Now the Federal Reserve Bank of New York has announced via Grading Student Loans that since student loans have grown to be such a huge part of the consumer debt landscape, they’ll be providing quarterly data–detailing the demographics of borrowers–on the Liberty Street Economics Blog.

How big a problem is student debt? Very big. As of the third quarter of 2011, the outstanding balance on student loans ($870 billion) exceeded the outstanding balance on credit cards ($693 billion) and auto loans ($730 billion). That’s big.

—Cheryl Russell, American Demographics

Wonder when colleges will start to be concerned? Students seem concerned as do recent college graduates given they’re:

Perhaps those trends will turnaround as the job market improves? Hope so, or we might see student loan delinquencies higher than anyone would have thought possible.

UPDATE: in 2021, student loan debt was about $1.7 trillion.

Fran Kick

FRAN KICK works with corporate and education organizations, groups, and associations that want to develop better leaders and smarter followers for faster long-term results. As an author, educational consultant, and professional speaker, he always shares relevant research, real-world insights, and actionable ideas YOU can implement to motivate yourself. So you can Kick It In and Take the Lead at work, in school, at home, and in life!