Loading ...stupidity these days…better off giving them $50K a few times and tell them to go have fun and learn something in your own business.
Student debt in the United States totals more than $1.1 trillion, having expanded by $855
billion in the past 10 years. The rate of serious delinquency on student loans has averaged
more than 11.25 percent over the past two years. Student loans are receiving increased attention
from borrowers, lenders and policymakers as concerns mount over students’ heavier debt loads
and their potential inability to repay.
So how do current student debt levels and delinquency rates, as well as trends over the past
decade, compare to other major consumer lending categories? Should borrowers, lenders and
policymakers be alarmed? And what are some possible consequences to younger borrowers?
Changing Trends of Consumer Debt
Chart 1 shows the rapid growth in student debt since 2003, surpassing the overall size of the
credit card lending market and the auto lending market. Near the beginning of 2003, there
was $688 billion in credit card debt, $641 billion in auto loans and just $241 billion in student
loans. Since then, student loans have increased at a compound annual growth rate of nearly
15 percent—more than three times faster than for auto loans. Credit card lending—which
increased prior to the Great Recession and then receded—is currently lower than its balance
in 2003. As of June 2014, credit card debt stood at $669 billion, auto lending at $905 billion and
student debt at $1.1 trillion. Read more and see charts