Implications of Student Debt

American household debt is growing, and student loans are a large contributing factor to this problem. In the fourth quarter of 2008, U.S. student loan debt was just under $640 million. In 2018 in the same quarter, that number had risen to $1.46 trillion, a 128% increase in one decade. For the 2018 fourth quarter, federal loans by the U.S. Department of Education account for 92% of student loan debt and private loans for about 8%. This rising student debt has far reaching implications for not only students, but also for their parents and the larger U.S. economy.

New York State has 1.2 million students enrolled in either public or private colleges and universities. Of these, 58% graduate with debts accrued to pay for their education.The average amount owed is $30,346, the 15th highest in the country. This debt means the former students have monthly payments on average of $350.