$1.5 trillion student loan debt, $1.1 trillion auto loan debt and ~$1 trillion in credit card debt -what could go wrong?
It’s that time again, an update on the degree of consumer borrowing as tallied by Federal Reserve data. For those of us that have been watching other consumer spending, debt and savings metrics, the results come as little surprise and serve to confirm not only our Cash-strapped or Middle-Class Squeeze investing theme. The data also lends support to the growing concern over the ability of the consumer to thrust the consumer spending led US economy ahead as the Federal Reserve continues to boost interest rates in the coming quarters.
Americans owe $1.5 trillion in student loans
We hit this milestone during the first quarter of 2018, according to Federal Reserve data.
Outstanding student debt currently exceeds auto loan debt ($1.1 trillion) and credit card debt ($977 billion).
42% of people who’ve gone to college took out debt
A majority of them took out student loans, but 30% had some other form of debt, like credit card debt or a home equity line of credit, according to a Federal Reserve report based on a 2017 survey.
Average new grad owes $28,400Among those who finished a bachelor’s degree in 2016 with debt, the average amount was $28,400, according to The College Board. That’s up from $22,100 in 2001 (reported in 2016 dollars).
Source: Student loan debt just hit $1.5 trillion. Women hold most of it
