Student Loan Debt Continues to Rise, Even as Consumer Debt Generally Falls

According to this report yesterday from the Federal Reserve of New York:

In its latest Quarterly Report on Household Debt and Credit, the Federal Reserve Bank of New York [on May 31, 2012] announced that student loan debt reported on consumer credit reports reached $904 billion in the first quarter of 2012, a $30 billion increase from the previous quarter.  In addition, consumer deleveraging continued to advance as overall indebtedness declined to $11.44 trillion, about $100 billion (0.9 percent) less than in the fourth quarter of 2011.  Since the peak in household debt in the third quarter of 2008, student loan debt has increased by $293 billion, while other forms of debt fell a combined $1.53 trillion. ... “Student loan debt continues to grow even as consumers reduce mortgage debt and credit card balances,” said Donghoon Lee, senior economist at the New York Fed.  “It remains the only form of consumer debt to substantially increase since the peak of household debt in late 2008.” (emphasis added)

Comments

[Lana]

It's really not surprising that student loan debt continues to rise, because for most future students getting a colege loan is the only way to attent college. Consumers debt is less, but it's hard to say that borrowing activity has declined. To my opinion, there's no end to a student loan until the education will not become more affordable. But when? In this tough economy it's hard to expect that something, especially education will get cheaper. That's hy we just can see the way debt rise and save money to avoid college loans.
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