A Trillion Dollar Education
by Daniel Luzer
Student Loan debt will high a new high mark in a few months. According to an article by Jenna Johnson in the Washington Post:
The total amount of student loan debt is expected to hit one trillion dollars before the end of this year, according to financial analysts, marking yet another milestone as Americans take on more and more debt to get an education.
Last year the amount of student loans surpassed credit card debt. And while consumers are paying down their credit cards and home loans outstanding student loan debt has doubled in the past five years. (And keep in mind that many people leave college with student loans and credit card debt.)
Student loans surpassed credit card debt when it hit $829 billion last August.
Total education debt grows by about $2,853.88 every second. USA Today reports that “Students with loan debt often delay major life events” like buying a house or having children. Well, right.
Such outstanding debt acts as a huge drag on the economy since it eats up so much of college graduates’ disposable income. This is income that they would otherwise spend on American goods and services or invest in American businesses.