Tuesday, July 10, 2012

The Rise of Student Debt

The percentage of households with education loans has more than doubled over the past two decades, according to new numbers from the Survey of Consumer Finances. In 2010, nearly one in five households (19 percent) had outstanding student debt, up from 9 percent in 1989. Among households with student debt, the median amount owed climbed from $5,100 to $13,000 during those years, after adjusting for inflation.

The numbers are worse for householders under age 35. Fully 40 percent had education loans in 2010, up from 17 percent in 1989. Young householders were once far more likely to have mortgage debt, vehicle loans, or credit card debt than student loans. Not anymore. The 40 percent of householders under age 35 with education loans surpasses the 34 percent with mortgage debt, the 32 percent with vehicle loans, and even the 39 percent with credit card debt.  

Source: Federal Reserve Board, Survey of Consumer Finances

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