A new study by Fidelity found that 70% of the class of 2013 is graduating with an average of $35,000 in college-related debt. That includes federal, state and private loans, credit cards and debt owed to family.
Outstanding student loan debt in the United States has tripled in the last decade to more than $1 trillion. It is the second largest share of household debt after mortgages.
Some say that student loan debt, like the housing market, will be the next bubble to pop. The Federal Advisory Council recently warned the Federal Reserve that student debt “now exceeds credit-card outstandings and has parallels to the housing crisis.”
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Overdue student loans are now at a record high, with 11% of recent graduates seriously delinquent on payment. The U.S. Education Department found that nearly 30% of 20 to 24 year-olds aren’t employed or in school.
Robert Archibald, professor of economics at The College of William and Mary and co-author of Why DoesRead More »from College Debt Isn’t a Bubble About to Burst – It’s Something Different