Student Loans Go Through the Roof

October 21 00:00 2011

New York, Oct 21 ( – While the US economy is still reeling from what can be called the housing bubble crash of 2008, there may well be another bubble under way. According to the latest figures, the student loan figures in the United States are crossing dangerous levels. For the first time, the figures have crossed $10 billion in a single year. Also, for the first time, the total outstanding student loans in all of America aggregated a whopping $1 trillion.

Just to put these figures into some sort of context, these amounts are larger than the amounts Americans owe as credit card debt. In fact, Americans are some of the most deeply indebted people when it comes to credit cards. Such a huge quantum of student debt is unprecedented in the US or anywhere in the world. The student loan has also risen by leaps and bounds and has more than doubled in 5 years.

Rising concerns of increasing unemployment are doing no good either. The worst part is that Americans account for the largest amount of student loan at a time when it may be the most difficult period to find a job. The unemployment rate is at a high of 9.1%. Maybe, the onslaught has already started. The percentage of defaults in student debt is up to 8.8% as compared to 6.7% earlier.