The New York Fed also released historical student loans figures, by quarter, dating back to the first quarter of 2003 as part of this quarter’s report. These data show that student loan debt has substantially increased since 2003, growing $663 billion. Outstanding student loan debt surpassed credit card debt as the second highest form of consumer debt in the second quarter of 2010.
“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.”
Additionally, 90+ day delinquency rates for student loans steadily increased from 6.13 percent in the first quarter of 2003 to its current level of 8.69 percent. They remain higher than that of mortgages, auto loans and home equity lines of credit (HELOC).
Is it any wonder the youth are disillusioned as they become the new middle class, with little opportunity and instead of a mortgage, a huge student loan around their necks? Perhaps all those calling for a housing bottom should consider who the bottom of the rung first-time homeowner is and how much more debt they are starting with now before calling the 'all-clear'.
What good is it to pay 110K for a college education when all you get is a degree in multicultural studies.
You could’ve gotten a degree in chemical engineering for the same amount of money.